AA (Alcoa) Elliott forecast

AA (Alcoa) trading strategy Seek an opportunity to enter long. Place stop loss at 22.15 (if price reaches this point, it means that the current outlook is totally wrong). You may also try to enter long at open, although the potential drawdown could be more than 10%. Profit Target at 39.40.AA Outlook Long term: Currently AA is in the incomplete Wave II of the Grand Super-cycle degree Impulse which is expected to complete in the price range .7 to 39.85, but more probably between 20.5 and 35.8. This wave is due to complete anytime from now until 05-Sep-2063, but is most likely to complete before 26-Dec-2008. After this wave II is complete, expect the market to continue up into wave III. Wave III should always be an Impulse and should retracewave II completely. Expect wave III to retrace wave II by 164% - 383%. Medium Term: Wave (b) of the Super-cycle degree Flat is expected to complete in the price range 36.72 to 90.93, but more probably between 37.28 and 51.6. This wave was expected to complete before 04-Jun-2004, and must complete by 24-Jan-2012. After wave (b) is complete, expect the market to continue down into wave (c), which should be a five wave Impulsive pattern. Short term: Wave (c) of the inverted Flat is expected to complete in the price range 26.42 to 69.64, but more probably between 36.62 and 56.07. This wave is most likely to complete sometime between 26-Dec-2005 and 22-Dec-2006 Note that it cannot complete until 05-Dec-2005 but must complete by 21-Aug-2009. This wave will also complete Wave (b) of the Super-cycle degree Flat and afterwards the market will move down in the impulsive wave, which would accomplish the current correction. Although the outlook for the next few months is bullish, there is an uncertainty for the very short time frame of several days up to two weeks. The stock price may continue to rise higher, however the price follows the upper Bollinger band and oscillators show that AA is probably in the overbought range. This means that soft range correction to 24-25 is possible at any moment. If you decide to buy at open, the potential drawdown may develop to 22.30 (if this outlook is correct).