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Berger: Alcoa 'Ripe For An Oversold Bounce Trade'

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Berger: Alcoa 'Ripe For An Oversold Bounce Trade'

In a note to subscribers, The Steady Trader’s Head of Investment Strategy, Serge Berger, provided some comments in relation to metals manufacturer Alcoa Inc (NYSE: AA).

The expert starts by looking back at how the stock price has been behaving.

Related Link: Stifel Lowers Alcoa's Price Target By A Buck

“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.”

Related Link: Is Aluminum On The Rebound?

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.

Posted-In: Alcoa technicals Serge Berger technical analysis The Steady TraderAnalyst Color Technicals Trading Ideas Best of Benzinga

 

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