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Technical Analysis: AA, PEP, MAR

|Includes: Alcoa Corporation (AA), MAR, PEP


October 8, 2009


By: Thomas H. Kee Jr.

Editor, Stock Traders Daily e Technical Analysis is available for every stock tain the report by clicking the highlighted symbol.




(La Jolla, CA)
 Stock Traders Daily has issued updated reports on AA, PEP, and MAR.  After the recent announcements, investors must develop a strategy to realize the opportunities ahead of them.  This article relays that through embedded research reports.  Those reports are actionable immediately.

Alcoa (NYSE: AA)  Immediately after earnings were reported, shares of AA surged to test longer term resistance.  We have defined this as longer term parameter #3 in our real time trading report.  Use it to guide trading decisions from here.  Analysts can debate the valuations versus the return to profits all day long, but if AA fails to break above longer term resistance it will fall back again.  Anyone interested in trading AA, and persons already invested in AA, should recognize longer term resistance and respect it.  A bullish scenario would come if AA breaks above longer term resistance instead.  Each scenario is outlined ion our report.  Click the highlighted symbol in this paragraph to download it..

PepsiCo (NYSE: PEP)  Warning: Shares of PEP have recently tested longer term resistance.  If longer term resistance holds, PEP will almost surely begin to decline back to support.  In our real time report, we have identified resistance as longer term parameter #3.  If that resistance level holds, PEP is poised to decline to longer term parameter #2 over time.  This is a bearish case.  It can only be trumped if PEP breaks above longer term parameter #3.  Monitor it closely, and moderate expectations if PEP remains under resistance.

Marriot (NYSE: MAR)  Longer term resistance has not yet been tested in MAR.  Investors should expect a test to occur if the stock can hold intra channel support.  It is flirting with that level now.  Treat longer term parameter #2 as inflection, because it represents longer term intra channel support.  If it holds, expect MAR to test longer term resistance (longer term, parameter #3).  However, if it breaks expect a decline to longer term support (longer term parameter #1).  In any case, the stock is poised to move, and direction is based on the successful or unsuccessful test of longer term intra channel resistance that is happening now. 

Disclosure: No Positions