Alcoa Inc (NYSE:AA) has been chopping sideways over the last month. This is coming after a sharp two week fall. Technical analysis tells us that this chart pattern is a bear flag formation. Bear flags on the charts are price consolidation that occur before the resumption of the previous move.
Since the previous move was sharp downside, this indicates that further downside is on the horizon. The downside target on this trade would be $6.75, marking a fall of over 30% from current levels. Note the chart below...
Chart: http://ift.tt/28LqYFe
Gareth Soloway InTheMoneyStocks
Submitted June 21, 2016 at 01:01PM by inthemoneystocks http://ift.tt/28Mcglu
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