Alcoa Elliott Update 12-26-2005

The stop loss has been activated and we ended up with 3.5% loss. Apparently we took a trade from the time frame where we can not make adequate analysis using End-of-Day data. Also it seems now that the wise decision last week would have been to exit short position once we started to suspect that the price only touched the target zone and completed the correction wave. Although it seems that the price will continue to increase, it is in the overbought territory and there is a chance that we are still within a correction sideways pattern. During the next week we will continue to watch price movement and avoid taking positions. alcoa aa stock elliott+wave technical+analysis trading