AA Alcoa Daily Chart H&S

Earnings season kicks off tomorrow with AA. Note the neck line failure of the pink H&S pattern at 15.5, but price managed to bounce back up due to the red falling wedge and positive divergence with the histogram and stochastics. During that time frame, however, the teal lines show that the RSI, MACD and money flow indicators all want to see lower prices moving forward, thus, this recent rally is not of substantive quality.

Since price recovered over the last month, an additional H&S is now in play shown by the blue lines. The pink H&S targets 12.5 and the blue line H&S targets the 10-11 zone, but, price must first collapse thru the respective neck lines at 15.5 and 14.5 for these targets to be in play. Earnings will be a short term catalyst for moving the stock but the chart above says sideways to ssideways down moving forward for the weeks and months ahead, in sync with a global slowdown. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.