Swing Trade Idea (AA) – March 07, 2023
Our bearish trade for Thursday, March 7th is Alcoa Corporation (AA). AA is part of the Materials Sector, which has performed at -2.01% over the last month, as it fails to break above previous highs.
AA formed a double top around the $55 mark, which has been an area of resistance for some time. As strength is declining and this level holds, we believe that a pullback from this level can be expected.
As a close, if AA were to trade above $58 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $3.50.