May 10, 2021, 10:59 am EDT
2021 Actual Trades: AA +34% Profits
The inflation era gives commodity stocks a solid foundation to climb up the uphills. Paper money can be printed easily but real objects like oil, steel, gold, silver cannot be obtained quickly. Furthermore, economic activities are another force to drive up demand for commodity stocks. 2021 could be the year for commodity stocks. Here is our quick winner Alcoa (AA) to the finish line.
Technical background and setup are shown below:
- Broadening formation from December 2020 to February 2021
- Top-bottom was 28-18
- Noticed breakout 28 in early March
- Short base and consolidation in March offered an entry point at 32 at top of the upper boundary
- Opened @32.37 on 03/26. It did not rally immediately but moved around 32
- Once it started to climb, AA went straight up to finish +34% profits
- Please note that it is hard to find other entry points for this type of pattern
