Start of a recovery for this share? | Summary and Q&A

TL;DR

Alcoa presents a low-risk opportunity for a potential bull run in the aluminum market, with a possible rally up to $30.

Key Insights

• 🤘 The price of Alcoa shares is closely tied to the market price of aluminum, making it important to analyze the metal's chart for potential opportunities.
• 📈 The daily chart suggests the formation of a bullish wedge or ending diagonal pattern, indicating a potential low-risk opportunity in Alcoa shares.
• 🍉 The long-term consolidation zone on the monthly chart, along with the potential Head & Shoulders reversal pattern, supports the idea of a rally phase in Alcoa shares.

Transcript

Read and summarize the transcript of this video on Glasp Reader (beta).

Questions & Answers

Q: What is the basis for the potential bullish opportunity in Alcoa shares?

The analysis of the daily chart suggests the presence of a bull run opportunity due to the formation of a bullish wedge or ending diagonal pattern in the price of aluminum, which is closely linked to Alcoa shares.

Q: How does the monthly chart support the idea of a rally phase in Alcoa shares?

The monthly chart indicates a long-term consolidation zone for Alcoa shares, with strong support at the $20 to $22 range. This suggests a base for a potential rally phase, especially considering the historical pattern of price movements.

Q: What is the significance of the potential Head & Shoulders reversal pattern on the monthly chart?

The presence of a potential Head & Shoulders reversal pattern indicates a possible trend reversal in Alcoa shares. If the neckline in the $22.50 region is successfully tested, it could lead to a substantial rally phase, with a target of around $30.

Q: What is the risk/reward situation for investing in Alcoa shares?

The risk/reward situation for Alcoa shares appears favorable, with a potential reward of $30 per share and a suggested exit point at the $21 level. This represents a $9 potential gain compared to the potential risk.

Summary & Key Takeaways

• The daily chart shows a potential bullish wedge or ending diagonal in the price of aluminum, indicating a low-risk opportunity for Alcoa shares.

• The monthly chart displays a long-term consolidation pattern, with strong support at the $20 to $22 range, suggesting a base for a rally phase.

• The presence of a potential Head & Shoulders reversal pattern on the monthly chart implies the possibility of a move up in Alcoa shares.