Alcoa Inc. (AA) — This producer of primary aluminum, fabricated aluminum, and alumina worldwide, fell from over $48, where it traded less than two years ago, to under $5 in early March.
But a slight increase in demand for aluminum, along with an extremely sold-off market for the stock, has allowed AA to form what appears to be a solid base.
And yesterday the stock tested its bearish resistance line with an increase in volume.
It looks like AA is about to break out of a seven-month consolidation and close above $11. If that happens, it would confirm the breakout with a target of $15.
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