Shares of Alcoa Corp., one of the largest aluminum producers, are correcting at 46.00.

On the daily chart, the price is approaching the already tested resistance line of the ascending channel with dynamic limits of 51.00–41.00.

On the 4-hour chart, the potential for further growth remains high, which confirms that quotes are above the maximum of 45.00 from May 14, and in case of consolidation above the extreme of 47.50, the asset will be able to reach the resistance line of the 52.00 channel.

Technical indicators maintain a buy signal: the EMA fluctuation range on the Alligator indicator is widening in the upward direction, and the AO histogram is forming corrective bars in the buy zone.

Trading scenarios

Long positions can be opened after the price rises and stops above the level of 47.40 with a target of 51.70. Stop-loss — 46.00. Execution time: 7 days and more.

Short positions can be opened after the price falls and stops below the level of 44.20 with a target of 40.00. Stop-loss — around 46.00.