With the main market having a somewhat difficult day, Alcoa (AA) dropped in pre-market, and was unable to rally on earnings, settling -11.4% @ $27.92. A test of the $27.00 threshold looks probable within the next few days... even if the broader market can rally.
Alcoa is in the middle of splitting into two distinct companies. In many ways, things are going to remain somewhat confusing for another few quarters.
There was a split in the stock last week of 3 for 1.. hence the price jump from around $10 to $30.
So long as AA can hold the 27s... the threat remains of renewed upside. Price structure on the giant monthly cycle is threatening a somewhat stretched bullish pennant.
Any move above the April high of $34.40 would be suggestive of another multi-month climb to challenge multi-year resistance around $50.