Let's have a look at the BIG picture chart analytics of Alcoa (AA) ahead of its initiation of the new earning reporting season starting tomorrow evening after the closing bell. I post the AA chart analysis merely as a way to gauge expectations in an otherwise very uncertain environment. Let's also be aware that earnings are one thing, but guidance once again might be the major challenge for investors during the upcoming weeks.
Purely from an intermediate-term technical perspective, if the chart work is telling us anything about the likely reaction of investors to Alcoa's earnings report after tomorrow's close, then the July-Oct set-up points to upside continuation to 13.05/10, and possibly to the 14.00 area in the hours immediately following the announcement. Only a sustained break beneath 11.80 will invalidate the current technical outlook.
Originally published on MPTrader.com.
