Alcoa Stock Forecast: Exploiting The Market’s Alcove Could Be The Key To Survival For Alcoa (AA)

Alcoa Stock Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

Alcoa Stock Forecast

I Know First has had success predicting the movement of Alcoa’s stock price in the past. In this three-month forecast from August 27th, Alcoa had a strong bullish signal strength of 50.29 and a predictability indicator of 0.03. In accordance with the algorithm’s prediction, the stock price increased by 6.28% during that time horizon.

Long and Short Aggressive

I Know first has had also success in this 1 year forecast from July 20th 2014, Alcoa had a strong bearish signal strength of -331.42 and a predictability indicator of 0.29. In accordance with the algorithm’s prediction, the stock price decreased by 37.67% during that time horizon.

I Know First published on Seeking Alpha a bullish article about Alcoa, the company is engaged in lightweight metals engineering and manufacturing and operates in four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts for Alcoa Sciences are included.

Alcoa Stock Forecast

Alcoa Inc. is among the top 40 stock picks for both time horizons. The stock has a relatively bullish signal for both, indicating that the stock is currently undervalued. Over the predicted time horizons, the stock price will stop decreasing and start climbing, which is in agreement with the fundamental analysis. Aluminium premium derivate and products are starting to rise in their demand and price and in addition, during the past years the American Group had been quite active on the acquisition market, resulting to buy shares in high tech companies and signing long term commercial agreements.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Alcoa Inc. Using this trading strategy, an investor should buy a stock if the last 5 day signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.