February 8, 2022, 9:48 am EST
Alcoa Breaking Out
Alcoa (AA) is breaking out today for a new 52 week high with +7.5% gains as of now. As we had mentioned in our 12/14/2021 article AA could be a good choice for the tough market.
Potential invasions of Russia-Ukraine and China-Taiwan are a big source of demand for aluminum material for aircraft and battleships. In addition, airliners’ growth from the better CONVID-19 conditions may also be another factor to boost the demand for new aircraft that will create more for aluminum maker AA.
Lastly, today material sectors are strong again: DD +6%, NUE +4%, FCX +4%, WRK +4%. Inflation is the most important reason for commodity prices to go up. AA may have a chance to make an uptrend rally from the current level.