Time To Steel A Buy In Alcoa As Earnings Beat Estimates
Alcoa Inc. released its second quarter earnings results on Monday (11/7), after the closing bell. The company’s adjusted earnings per share came in at 15 cents, with revenue of $5.3 billion, 1.9% higher than estimates. After the announcement, Alcoa shares jumped 3.2% in after hours trading.
Additionally, Alcoa also expressed confidence that revenue in the near future will be driven by demand for aircraft building materials, which is anticipated to grow 6% during the second half of 2016.
On the H4 chart, the stock is in an uptrend. RSI (14) has ticked up to 66.7096, suggesting that the bullish trend is overwhelming. Stochastics indicate that the stock is already in overbought zone, but the %K line has not shown any signs of crossing over %D line yet, which means a pullback is not yet in the picture. The next resistance to test is 10.23.
Buy stop at 10.15, Take profit at 10.26, Stop loss at 10.04