Sunday, November 13, 2005

AA (Alcoa) Elliott Wave Update

Trading strategy 1. Use an oscillator signal to enter long when the price drops below 25.7 (preferably 25). 2. Before entering long, update the forecast to check if the outlook will not have changed. AA Outlook There is no a significant change in the outlook for AA compared to the previous week. The stock is rising and has a potential for higher price. However, it is in the overbought territory and entering a trade in such situation would be uncomfortable. We will seek an opportunity to enter long during a short term correction preferably when the entry point is supported by RSI or stochastic. One would expect an approximate price range for the convenient entry point to be around 25, although it may change if the price continues to move upwards.

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