Alcoa surges – time to take profits?
My only stock selection for 2014 is Alcoa, as you already know. I have charted the wonderful upside break of the multi-year wedge (descending triangle) over the past several months.
Today, Alcoa kicked off the Q1 earnings season as usual and the stock surged on the news. But it may be time to take partial profits here. I have a large neg mom div on the daily and it is usually a good time to take some profits after a positive news item.
We have a terrific 75% profit since last year, so I shall be prudent and take it.
Made a low at 16,200 yesterday when I advised taking at least partial profits. I will see how the rally develops before making another trade.
Has been rallying nicely and is heading towards my first target in the $1320 area:
I’m not sure at this stage if it can move higher than that and I will be watching it closely.
I remain long.
A heads up that my next Weekly Wrap will appear on Sunday.