Algoma Steel, South Bow rise after Trump says U.S. reached trade deal with Canada
The stock prices of Alcoa Corporation (AA) and South Bow rose as Trump announced a trade agreement between the United States and Canada.
With positive news, the stock price is positioned above the support level ($3.63), showing downward rigidity, and since it has not yet reached the resistance level ($4.61), it is assessed that there is potential for upward movement, making it a candidate for purchase.
If the resistance level of $4.61 is clearly broken and maintained, set the take-profit price at $4.61, and if it falls below the support level of $3.63, set the stop-loss price at $3.63.
The RSI(14) is at 46.3, indicating a neutral zone, and the moving averages show a non-aligned state with no clear trend. The trading volume has increased to 2.15 times the 20-day average, indicating heightened interest, and the recent 7-day volatility shows a slight upward trend of +0.4%.
As expected, there was a short-term upward momentum due to positive news and an increase in trading volume; however, the stock price fell to the support level due to the misalignment of moving averages and failure to break through the resistance level, leading to a stop-loss situation. Caution was necessary regarding excessive optimism between the forecasted return of 3.5% and the actual return of -11.0%.
In the future, we will set the condition for confirming the breakout of the resistance level by additionally verifying the alignment of moving averages and the expansion of trading volume. We will also set the stop-loss slightly above the existing support level to prepare for volatility, and we plan to ensure the consistency of technical signals for each stock, in addition to news.