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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