Alcoa Surges On Tariff Talk
InTheMoneyStocks.com | Jan 19, 2017 01:09PM ET
Tariff talk on Chinese metal imports sent Alcoa (NYSE:AA) soaring. The stock has benefited from Donald Trump's rhetoric on trade tariffs. As the stock surges higher, calculating the final target becomes extremely important -- for investors holding the stock long and those looking to short it. To calculate this target, investors need to note the perfect measured move in progress. Notice that the first move up was $12 -- from $20 to $32. Then note the perfect bullish consolidation sideways, prior to the breakout. To figure out the target, simply take that same $12 move and add it to the low of the current surge. The low is $28, so adding $12 gives you a final target of $40. In other words, Alcoa has another $5 of upside before it slams into mega resistance and becomes a short trade.
Long investors can enjoy the ride for another 15% upside.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.