This stock was added to our Active Trade List today. Let’s look at $AA – December 16, 2021
AA AMD
This is Scott with your Chart of the Day. I want to share a chart that Dan Fitzpatrick added to our Active Trade List over at stockmarketmentor.com, it is Alcoa ( NYSE: AA ). I see exactly what Dan was looking at here on the daily chart.
If you look at this chart you can see a clear level of resistance right around that $51.00 level, Alcoa ( NYSE: AA ) tried to get above back here, failed. Tried to get above back here, failed. Finally got above, hurray, failed. And so it has had multiple attempts to try and get above this level. It gapped today, did it on pretty good volume. If I bring in the 10-minute chart here, you can see, it ramped on pretty high volume right off the open as it was trying to make a run here.
Now, although I’m a swing trader and I typically like to use daily charts for my signals I know that Dan was probably looking at the weekly chart here because the weekly is really where the story is told here. So as you can see Alcoa ( NYSE: AA ) has really just kind of been going sideways for about 3-months or so. And it’s trying to make a new weekly higher high on higher than average volume. If it can do that and close strong here then I think that this stock could be good for potential swing trades, at least up until that $57.00 level, where it could potentially retest the highs up there
So what I want to see from Alcoa ( NYSE: AA ), first off is, I want to make sure this stock holds above today’s intraday low, that’s key, in my opinion. If you are in this stock right now, and I do have a small position in this stock, I want to make sure that it holds above that level and doesn’t fall back into that base. If it does, then it’s not breaking out it is just doing what it’s done many times over this period of time.
Now, we’ve seen stocks like AMD ( NASDAQ: AMD ) back a while ago. This stock, way back here, had a ton of false breakouts. Anytime here you think this stock is, oh, here we go, now it’s time and then it gets rejected. Oh, now it’s time, and it gets rejected. And so this is not uncommon for stocks to hit these clear levels and get rejected over and over and over. And eventually, they can, after some time, break out above that level. And when they do you can get these massive moves.
That is kind of what I am thinking we could see with Alcoa ( NYSE: AA ) if it can make a sustained move and close above this clearly defined level of resistance. So keep an eye on Alcoa ( NYSE: AA ), I think it could be good for a trade if the market is able to firm up and hold some gains. So keep AA ( NYSE: AA ) on your watch list, it is currently on our Active Trade List over at stockmarketmentor.com.
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