Since March 2020 crash, Alcoa (AA) has risen in share value around 800% and with the high prices of the Aluminum it must continue rising its value. Moreover, AA has built an incomplete impulse and it needs to keep the rally to develop the whole structure. We are considering a target above $47.00 dollars in first instance and in the future we are going to recalculate that because the price should be more higher.
Alcoa (AA) daily chart
As we see in the daily chart, the wave ((1)) ended in 5 swings and the pullback as wave ((2)) bounced from $10.95. With the break of the price of wave ((1)) we confirmed that wave ((2)) has done. Currently, we are developing the wave ((3)) that needs one high to complete 5 swings up. The wave (3) of ((3)) reached $44.49 and wave (4) of ((3)) ends at $31.90 dollars. With that data, it give us an area of $47.44 – 52.23 as possible target to end the wave ((3)).
Short Term the bounce from wave (4) of ((3)) looks like as wave 1 of (5) that could be done and the next week, we should see a pullback in 3 swings as wave 2 of (5) that will give us a nice opportunity to enter in the market against $31.90 level. Therefore, we should continue higher in the stock to look for break wave (3) peak following the uptrend as we could see in the chart.