Xgains4keeps Stocks Take Away and Related Content-Alcoa Inc (AA)
Alcoa Inc (AA) to buy jet-engine parts maker Firth Rixson for $2.35 billion
June 26 2014 Alcoa Inc (AA) reached a deal to buy aerospace-parts maker Firth
Rixson from Oak Hill Capital Partners for $2.85 billion in cash and stock. The
company said it expects Firth Rixson to add $1.6 billion in revenue and $350
million in earnings before interest, taxes, depreciation and amortization in
2016.
Alcoa Inc (AA) hopes to participate in the downstream end of the Aluminium
business with this acquisition; which in itself makes sense as it can now
control the processing of the metal as well as its consumption.
Alcoa has not really moved very much since the announcement of this deal was
made though a 1.65% downward correction will be quite significant for its options. Its Put-Call ratio is 0.37 indicating that there are more than double
the number of open interest Calls as there are Puts as well as indicating that the
options traders are bullish. The short ratio is a significant 5.30, based on
Alcoa's outstanding volume of 1.17 billion shares it will take more than five
trading days to cover these shares sold short.
Alcoa's 52 Week High is 15.18 (6/26/2014)
and 52 Week Low is 7.63 (7/3/2013); which is a 98.95% increase during this
period. So with the level of scepticism investors have towards AA in the form of
its short ratio it can be said that some of them are asking questions and are
sceptical in the most profound way.
The price curve for Alcoa is trending above the Simple Moving Average curve a
further indication of how well AA has performed technically, but we can see why
some of the investors are sceptical, the Accumulation-Distribution curve is
trending very high. This could mean that investor are Accumulating more shares
of Alcoa (AA) in line with the upward movement of the price. This indeed must
have spooked some investors and we are equally spooked with the implication of
the Accumulation-Distribution and Price curves relationship.
Ultimately it means that the shares sold short will serve as buffer for what
looks like a stock that will inevitably seek to point downwards. Keep your eyes
peeled on the short ratio because if it drops off Alcoa (AA) will lose its
support.
Share on Facebook
Related Content for: Accumulation-Distribution Curve is Trending Very High
Trend-Spotting With The
Accumulation/Distribution Line
www.investopedia.com/articles/.../08/accumulation-distribution-line.asp
by John Devcic - 18 Feb 2009 - The
accumulation/distribution line was created by Marc Chaikin to ...
that the price closed halfway between the high and low of the range. ...
Trading Gaps - The A/D line does not take trading gaps into consideration, so
these ...
Foxchart Technical Analysis:
Accumulation Distribution
www.foxchart.com/ta.php?ta=Accumulation-Distribution
The Accumulation/Distribution Line has been
one of the most popular ... More volume is added the nearer the close to
the high for the day and more ... which means that the A/D line is
trending upward while the price is trending downward.
Accumulation Distribution Line - StockCharts.com
stockcharts.com/school/doku.php?id...accumulation_distribution_line
Developed by Marc Chaikin, the Accumulation Distribution
Line is a volume-based ... Chartists can use this indicator to affirm a
security's underlying trend or anticipate ... The multiplier is positive
when the close is in the upper half of the high-low range and .... Murphy
covers most the major charts patterns and indicators.
Accumulation/Distribution
Line - Leavitt Brothers: Forget the ...
www.leavittbrothers.com/.../chart.../accumulation_distribution_line.cfm
The Accumulation/Distribution Line is a
cumulative momentum indicator that uses ... If a stock closes very close
to the high of day then most of the volume is ... the
Accumulation/Distribution Line will trend up with occasional
small pullbacks.
Accumulation Distribution (ADL) - TradingView Documentation
https://www.tradingview.com/stock.../Accumulation_Distribution_(ADL)
10 Oct 2013 - 5.1 Trend Confirmation; 5.2 Divergence;
5.3 Unreliability ... Accumulation Distribution Indicator or ADL (Accumulation
Distribution ... by the relationship between a period's closing price and
the period's high/low range. ... So when you combine a highly
positive multiplier with strong volume the ADL will rise.
Incredible Charts:
Accumulation Distribution
www.incrediblecharts.com/indicators/accumulation_distribution.php
Accumulation Distribution tracks the relationship between price and volume ... to detect divergences
between volume and price action - signs that a trend is ... the most
recent low (when going long) and above the latest high (when going
short).
Accumulation Distribution Technical Indicator
www.onlinetradingconcepts.com/.../AccumulationDistribution.html
Accumulation Distribution uses volume to confirm price trends or warn of weak ... at High
#2; however, the Accumulation Distribution Line failed to make an equal
high, ... In summary, the Accumulation Distribution Line is a
very effective tool to ...
Technical
Indicators & Studies - Commodity Systems Inc.
www.csidata.com ›
Support
›
Documentation
If the Accumulation/Distribution Line is
trending upward it indicates that the price may follow. ... To interpret the
ADX, consider a high number to be a strong trend, and a low ....
Note that the calculation shifts the results (shift = term / 2 + 1) periods,
so the .... When the two curves resemble a sine wave, the market is
in a cycle, ...
Indicators - Bollinger on Bollinger Bands : Mobile |
Official ...
www.bollingeronbollingerbands.com/appsupport_pc/?s=indicators
The upper line represents the highest BandWidth in
the past 125 periods (The ... Match the period to the trend that you are
trading, 20 is the default, and use ... three volume indicators, Accumulation-Distribution
(AD), Intraday Intensity (II) and ..... is a short-term component of the
Expectations curve that is more sensitive than ...