How Long Can Alcoa Stand Alone?Material stocks have come under pressure as the Federal Reserve gets hawkish. Alcoa has held up better than many peers, but for how long?
Notice the candles with long upper tails or solid bodies as the aluminum company chopped above $60. Those indicate selling pressure around that price.
Looking further back, notice how that level matches a high from April 2018. It’s also the low from 2006 and January 2008 – immediately before the subprime crash. That could make the price zone especially important.
Next, you have bearish divergence because MACD started falling as AA tested the highs.
Third, the weekly chart shows two consecutive candles with lower highs and lower lows. There’s also a price channel with its bottom currently around $48:
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