Berger: Alcoa 'Ripe For An Oversold Bounce Trade'
The expert starts by looking back at how the stock price has been behaving.
“Shares of Alcoa stopped rising in the bigger picture last summer when the dollar set foot on a strong rally. Since squeezing out a marginal higher high last November however the stock has looked consistently lower and now sits 30% off those highs.”
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Nonetheless, Berger adds, the stock is increasingly “well oversold as it has retraced more than 50% of the entire rally off the 2013 lows and as measured by a host of oscillators.” Furthermore, he adds, Alcoa’s stock has tumbled in ten out of the last eleven trading sessions.
“Upon the next bullish reversal day I am looking to buy AA stock...Once I enter the trade I will be looking for a price target near the $13.50 area," Berger concluded.
Shares of Alcoa are down almost 21 percent year-to-date.
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