Alcoa’s reversed in price towards higher trading is over after price dropped below 9.92 support level and closed below this level, price confirmed the H&S pattern on small charts which is in favor for down move. Alcoa’s upward move is limited above its swing high, and price failed to make a positive retest and dropped towards a test of the 9.92 support level, and this confirms our suspicions, this could still lead us that this move is corrective and bulls trap. If there is a sustain gain below 8.93 level, down move is favor towards a retest of rebound and if price drop even more rebound in price is over. Our vision for intraday bias is bearish after drop in price and failed trade above 8.93 level which seems to be crucial level for upward move. Focus of the down move will be 8.93 level, if price managed a sustain gain below, this would trigger another down move towards 8.33 support level.
On the opposite side, if Alcoa manage to trade above 8.93 this will indicate that buyers are accumulating power and for test of the 11.12 resistance level. If that is the case price would find consolidation first to gather power for big push toward break above upper resistance trend line.
Daily Pivots: Pivot Point – 10.06, 1st Support – 9.96, 1st Resistance – 10.16