Alcoa Facing Resistance: A Technical Look
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Alcoa Inc (NYSE: AA) shares are trading sharply lower by $0.86 (about 6 percent) at $14.32 in Tuesday's session. The catalyst for the decline is a downgrade from Bank of America to Neutral from Buy. The firm also reduced its price target from $20.00 to $17.00.
The issue had already backed off its six-year plus high made on February 5 at $17.10 to the $15.00 level before the downgrade pushed it into the lower $14.00 handle.
After trending lower during pre-market trading to $14.75, it could not manage any kind of bounce of the much lower open (Tuesday's close of $15.18 vs. Wednesday's open of $14.74), sellers flooded the issue. So far, it has found intraday support above its October 16 low ($14.01), only reaching $14.15 and rebounded to $14.39 at the time of this article was written.
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