2016-07-14 15:12:11

Alcoa Inc., #AA [NYSE]
Industrial goods, Aluminum, USA

Financial performance of the company:
Index – S&P 500; Beta – 1.14;
Capitalization – 10.35 В; Return on asset: -0.50%;
Income -322.00 М; Average volume – 34.20 М;
P/E: -; ATR – 0.50;

Analytical review:

  • ​The company ranks the first on capitalization in the sector of “Aluminum” among the issuers traded in the American stock market;
  • On Monday, 11 of July, the company issued a report for Q2 of the fiscal year 2016, which showed that the price of the issuer has grown by 16.5%. It is expected that the rise in price will continue;
  • According to press-release, company’s revenue amounted to 5.3 billion USD against market expectations of 5.25 billion USD. Net profit exceeded market expectations by 66% and amounted to $0.15 per share;
  • At the press-conference company’s executives stated that due to significant decline in price of aluminum, the company is planning to reorganize its business in the next 6 months. Alcoa expects that in the next 6 months company’s revenue will grow by 6%;
  • Company also expects that demand for aluminum will grow by 5% this year. The company estimates that aerospace market will expand by 1-4%, which will increase Alcoa sales;

Summary:

  • Company’s last report increased investors’ confidence in the company. The results of Alcoa Inc. exceeded market expectations. Reorganization of business and optimistic forecasts will contribute to the increase in the company's shares.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Alcoa Inc.

Key levels:
Support levels: 10.15 USD and 9.15 USD.
Resistance levels: 10.70 USD and 11.40 USD.

Medium-term trading, Н4
At the moment the issuer is traded near resistance level of 10.70 USD. After breakdown and testing of this level and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 11.30 USD, 11.70 USD and 12.20 USD with the use of trailing stop.

Medium-term trading, Н4
Medium-term trading, Н4

Short-term trading, М15
At the moment the issuer is traded in the range of 10.45-10.75 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions shall be opened at the signal line and the nearest support/resistance level. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15