$AA, Alcoa Corporation

$AA Daily Chart

Trade Date: 04/25/17

Alcoa reported earnings results today with a profit of $0.63 per share and revenue of $2.66 billion. New management and higher global demand for aluminum, allowed for the stock to break above its descending trendline on the daily chart. Wall Street loves to rag on Alcoa, getting surprised whenever it does well. I guess that’s why they’re reporters and we’re traders!

Trade Style: Day Trade

Position Bias: Bullish

Technical Criteria

  • Price Change: + $ 1.44 and + 4.32%
  • Premarket Volume: 28,360  shares
  • Daily Average Volume: 5.0 million shares
  • Average True Range: $1.29

Entry Price & Time

            Today might’ve been the worst case of slippage (when you lose a few cents on your entry) I’ve ever experienced in a trade. The price I wanted to enter was $34.76. While I was waiting for price confirmation and enter on the break, it immediately spiked to $35.22. When it pulled back slightly I was able to enter at $35.00, but it was still $0.25 above my desired price. 

            Entry Price: $35.00

            Entry Time: 9:32 AM

            Stop Price: $ 34.43

            Risk: $ 0.57

$AA Entry on 1 min. chart

Trade Management and Psychology

            I’m usually pretty calm once my trade is in the money, but the horrible fill had me on edge. Once the stock pulled back to my entry price I considered breaking my rules and exited the trade. But my gut told me not to. So I just treated this like any other trade and held until my stop was hit.

Exit Price & Time

            When you’re in a winning trade, sometimes it pushes even higher by the end of the day. Exited my position at 3:30 PM near intraday highs.  

            Exit Price: $ 36.37

            Exit Time: 3:30 PM

$AA Exit on 5 min. chart

$AA Trade Executions

Results and Evaluation

            I’m really glad that I didn’t break my rules. The temptation was strong once it pulled back to my entry at 10:00 AM. Fortunately I held on and the stock bounced.

Risk: $ 0.57

Reward: $ + 1.37

R Multiple: + 2.37 R