Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

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Romanian Market. This is a section dedicated to Romanian stocks and indices.

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Friday, May 18, 2012

Alcoa (AA) - Testing mid-term support. 2012.05.18

The price of Alcoa shares reached the main long term support of $8.48 which was tested twice in the past 9 months.

The Elliott Wave analysis of the previous bear market (since April 2011) indicated a corrective wave that probably started in late December 2011. As it looks in present, the corrective wave could develop into an expanding flat pattern. This means that the current swing down should reverse somewhere below the active support ($8.48) and should rally towards the February local high, in the $10.80 area.

The increase in volumes in the past few days could symbolize the beginning of an accumulation.   

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