AA Alcoa Daily Chart Textbook Ascending Triangle Pattern

Double A was a Keystone fave last year; it was one of the few attractive LTBH's. Price is riding a rocket off the positive divergence bottom last summer. It is surprising to see it move as much as it has. The ascending triangle pattern is textbook and a nice chart to highlight for novice chartists. Using the blue triangle an upside target is 13.7-14.0 and the pink triangle yields an upside target at 13.6-13.7. The red lines show negative divergence and a move that is long in the tooth. The weekly chart is similar. The green lines show long and strong in the short term so Alcoa has momo still yet.

The expectation is for AA  to top out say over the next month or three at 13.5-14.0 and roll over to the downside heading sideways with a downward bias for the rest of the year. So another 5% may be squeezed out of the upside but overall, price will need to come back for a back test at the 12.0-12.3 level, about -8% lower. The money was made on Alcoa over the last few months; the position can be trimmed here on out say over a three-month time frame. Alcoa should top by summer and fizzle out. 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.