Monday, July 8, 2013

AA Alcoa Weekly and Daily Charts Q2 Earnings Season Begins

Double A kicks off earnings season this evening, in less than one hour. Keystone liked AA as a longer term buy and hold (LTBH) a while back, however, the development of the descending triangle on the weekly chart dampened the enthusiasm. Even though price has fallen through the baseline of the triangle which opens the door to a target to 5.5-6.5, the chart does not have the vibe that it wants to go down there. The purple dots show the moving average ribbon at its very lowest where price typically needs to bounce.

The positive divergence bounce clearly occurs on the daily chart over the last three days and shows long and strong indicators for the days ahead. Therefore, the gut thought on tonight's earnings would be positive allowing price to continue the move higher.  Overall, AA is not flashy, sexy or exciting, it is likely a sideways road ahead for weeks and months. If the broad indexes experience a large sell-off, AA may be an attractive place to park some money since it will likely be less affected to the downside than the broader market. Projection is lots of sideways ahead for this aluminum producer. Higher natty gas prices are a negative for aluminum production. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

Note Added 4:04 PM:  AA beats by a penny. Top line revenue is flat in line. So Alcoa kicks off earnings season beating by the proverbial penny on EPS while the top line challenges continue. AA is up AH's to 8.03.

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