Alcoa Corp. (AA) is ready to tell shareholders and fundamental analysts their latest quarterly numbers after the close of trading Wednesday. Let's check and see how their charts are doing ahead of the news.
In the daily bar chart of AA, below, I can see that the shares have been holding around the $40 area after a pullback. Trading volume did not increase on the decline so I would conclude that prices "fell of their own weight." AA is trading below the bearish 50-day and 200-day moving average lines.
The On-Balance-Volume (OBV) line has been moving sideways since November. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal.
In the weekly Japanese candlestick chart of AA, below, I see a mixed picture. The shares are holding around $40 on the chart but trade below the 40-week moving average line.
The weekly OBV line has edged higher from early March and the MACD oscillator is narrowing towards a potential cover shorts buy signal.
In this daily Point and Figure chart of AA, below, I can see an upside price target in the $45 area. A step in the right direction.
In this weekly Point and Figure chart of AA, below, I can see a potential downside price target in the $33 area but a trade at $42.65 should improve the forecast.
Bottom-line strategy: I have no special knowledge of what AA will tell shareholders Wednesday night. In my February 22 review of AA I recommended that "investors should be patient buyers. Risk to $39." If you were stopped out of AA I would look to rebuy that position.
