Solid News

Alcoa Corp. Market Update

9/9/2022 3:40 PM

Shares of Alcoa Corp., one of the world's largest aluminum producers, are correcting around 49.00.

The company continues to balance incoming positive and negative news, reducing trading volatility. So, yesterday it became known that the Pocos de Caldas office in Brazil received certification from the Aluminum Management Initiative (ASI), allowing ore production in the country without any legal restrictions. Thus, the division has already become the seventeenth licensed object of the corporation in Brazil.

In negative news, a recent report from Norway where the LISTA smelter announced a reduction in production capacity of 30% or more due to high energy costs: it is planned to reduce about 31.0K metric tons of production over a 14-day period, which ends at next week. Electricity costs in Norway have increased by 600,0 dollars per megawatt hour for Alcoa, and the company is already planning a new deal with energy company Statcraft, which offers less volatile rates.

The company's financial report will be released on October 13: revenue could drop to 3.03B dollars, and earnings per share could fall to 0.7611 dollars. Given such poor forecasts, it is not necessary to talk about a significant increase in securities soon.

The trading instrument has left the limits of the global downtrend but continues to decline. Technical indicators maintain a stable sell signal: the Alligator indicator's EMA oscillation range began to expand downwards, and the histogram of the AO oscillator forms downward bars in the sell zone.

Resistance levels: 51.50, 57.40. | Support levels: 46.80, 39.50.

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