Alcoa shareholders may have suffered the indignity of seeing their stock dropped from the Dow Jones after 44 years but the stock’s performance might have helped offset any loss of face. It’s rallied 73% since July last year.
The news flow was again positive this week with Alcoa’s profit result beating expectations and the company predicting a supply deficit for aluminium this year after a depressing 9 year stretch of surpluses. It seems industry production cuts and rising motor vehicle demand are having an impact.
Is all this cheer already factored into the stock price? The Alcoa chart is suggesting that investors are at least beginning to have doubts. Wednesday’ high looks like it could turn into a double top. This would be completed if the dashed support between the peaks at around $12.36 is breached.