Current trend

The stocks of one of the world's largest aluminum producers Alcoa Corp. continue to trade within the long-term descending channel.

Currently, the price is close to the lower limit of the main Murray trading range at 31.25 (Murray level [0/8]), its breakdown will allow it to continue moving to the reversal zone to the level of 28.12 (Murray level [-2/8]). The key for the "bulls" is the reversal level of 34.38 (Murray level [2/8]), supported by the middle line of the Bollinger Bands, if consolidated above it, the price will be able to leave the descending channel and continue to rise to 37.50 (Murray level [4/8]) and 40.62 (Murray level [6/8]) with a transition to the positive part of the trading range.

Technical indicators allow for further decline: the Bollinger Bands are horizontal, the Stochastic reverses downwards, the MACD histogram is stable in the negative zone.     

Support and resistance

Resistance levels: 34.38, 37.50, 40.62.

Support levels: 31.25, 28.12.

Trading tips

Short positions can be opened below 31.25 with a target at 28.12 and stop-loss at around 33.40. Implementation period: 5-7 days.

Long positions can be opened above 34.38 with targets at 37.50, 40.62 and stop-loss at around 32.20.