Alcoa
When it comes to aluminum and base metals mining there are not many players better known than Alcoa Inc. (AA). At current levels, the chart of Alcoa is particularly interesting because recent selling pressure has sent the price back within a very tight trading range. The two dotted trendlines shown on the chart below have consistently acted as support and resistance over the past year. The move toward the lower trendline could be setting up a very lucrative risk-to-reward ratio for the bulls since technically the momentum is still in the upward direction. Notice how the price found support near the 200-day moving average back in March. This type of behavior is typical near strong support levels, and the recent drop could be offering traders a buying opportunity before the uptrend resumes. (For more on this topic, check out: Interested In Metals? Start With This ETF.)
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