Alcoa fell 4.6% last week
Similar to Freeport-McMoRan (FCX) and Glencore (GLNCY), Alcoa (AA) fell 4.6% in the week ending on March 26. It closed the week at $9.57. It’s one of the largest aluminum miners in the base metal industry. Even though Alcoa closed the previous week above the prominent resistance level of $10—the first weekly close above $10 in 2016, it failed to carry the same positive momentum to last week. As one of the top aluminum producers, the performance of Alcoa’s shares maintains a strong correlation with aluminum.
Alcoa fell to the multiyear day close of $6.74 on January 20. It started recovering with aluminum. The rally stopped from the second week of March because of weakness in aluminum prices. Alcoa started consolidating broadly between the price levels of $9 and $10. Looking at the correlation, any strong movement in aluminum has the potential to support Alcoa’s prices. This increases its chances to trade above $10 and $11. Since the beginning of 2016, Alcoa fell 3.0%.
Rio Tinto fell 4.9% last week
Rio Tinto (RIO) is a British-Australian metal and mining corporation. It fell 4.9% in the week ending on March 26. It closed the week at $27.71. In the previous week, Rio Tinto tried and failed to close above the important resistance level of $30. Since then, it continued to fall. Rio Tinto started last week on a negative note. It tried and failed to close above the 100-day moving average on first trading day of the week. It fell in three out of four trading days. Since the beginning of 2016, Rio Tinto fell 4.8%. The price levels of $25 and $30 are the nearest prominent support and resistance levels for Rio Tinto. The Power-Shares DB Base Metals Fund (DBB) and the SPDR S&P Metals & Mining ETF (XME) fell 2.8% and 3.7% last week.