Alcoa Inc. (AA) has seen tremendous upside action since the Fed Rate cut last week. What does that mean for AA?

Before the rate cut by the Fed, AA was consolidating and trying to create a double bottom reversal. The rate cut brought the upside action needed to push AA through the neckline of the double bottom.

Now AA has retraced back to the neckline resistance turned support. This indicates that AA will see some added upside pressure very shortly. The upside move should equal the height of the neckline. With that in mind, AA should move to the upside about $4.00. That move would push AA to about $41.00. I believe this move will come over the next month.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.