Current trend

Shares of Alcoa Corp., one of the largest aluminum producers, are adjusting at 34.00.

Yesterday, the company announced its intention to sell a 25.1% stake in the Saudi state mining company Ma'aden, which is estimated at 1.1 billion dollars (about 86.0 million shares). From 2009 to 2024, the total volume of Alcoa Corp.'s investments in the company amounted to 545.0 million dollars. The deal is scheduled to be finalised in the first half of 2025, and some regulators have already given their consent. Against this background, analysts at Wolfe Research LLC raised the rating of the emitter's shares from "Peer Perform" to "Outperform" and the target price to 36.0 dollars per paper. The positive estimates of analysts are also associated with an increase in aluminum prices, which has already added 6.0% since the beginning of autumn.

Financial report for the third quarter of Alcoa Corp. will be published on October 16: analysts expect revenue growth from 2.91 dollars to 2.95 dollars, while earnings per share (EPS) is expected at 0.4538 dollars per paper after a loss of 1.14 dollars last year.

Support and resistance

On the D1 chart, the asset quotes reversed again, working out an ascending channel with boundaries of 36.00–28.00.

Technical indicators reversed again and issued a buy signal: the range of EMAs fluctuations on the Alligator indicator is expanding in the direction of growth, and the AO histogram forms new correction bars, being above the transition level.

Support levels: 33.10, 27.90.

Resistance levels: 35.40, 40.40.

Trading tips

In case of a reversal and continued growth of the asset, as well as price consolidation above the resistance level of 35.40, one may open long positions with a target of 40.40 and a stop-loss of 34.00. Implementation period: 7 days and more.

If the asset continues to decline and consolidate below the support level of 33.10, one can open short positions with a target of 27.90 and a stop-loss of 35.00.