Alcoa Shares Pushing Treadline Resistance

Alcoa Inc. (NYSE:AA) shares are right at the treadline resistance, trading around $14 a shares, now which way will they go?

Thanks to finviz.com free charts, Alcoa (AA) shares are right at the treadline resistance and as stocks charts tell us, if the economic outlook continues to deteriorate for the coming year, the bottom trend line (support) shown quite possibly will become the new top trend line (resistance) as the market goes lower.

In 2009 Aloca shares have comeback 24% and have jumped from just under $5 to $14 since the March lows.  Alcoa did just report great Q3 earnings however revenue fell 34% to $4.62 billion from the same period a year earlier, but was up 9% from the second quarter of 2009.

COST CUTTING ONLY GOES SO FAR
Glass half-empty, Alcoa earned $77 million, or 8 cents per share this past quarter but did so by cutting almost 20,000 jobs since the Recession began. 

Alcoa also did well thanks to metal prices coming back to life, a 20% increase to an average of about 80 cents per pound during the quarter compared with the prior three months helped Aloca improve the bottom line.

If you ask RBC Captial Markets, they set a $15 price target on Alcoa shares on Oct 8th, so at best, you could expect shares to increase another $1.50 from its current levels by Oct 2010.

Trust the charts or the analysts?  Either way, at this point in the game for Alcoa, shares are priced on the high range.

Disclaimer: No positions in AA.

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