I couldn't find a recent thread in the Chart forum for ALU so I'll run with this old one.
ALU is a good medium term trading stock for me and having made a short term target of $35.70 recently, it is close enough to that to say it has made target. That said it has made a Wyckoff pattern (the large rectangle) which suggests prices should generally keep rising (with the usual ups and downs so not it a straight line) to $45.20. Now that would be a good trade! Price has been trading in a rising channel for 3 years (apart from recent low which might just be an oversold event) and $45.20 (the short dotted horizontal line) would take price back fairly close to the overhead channel boundary.
The alternative view is that it has risen so strongly since the low some form as moderate retracement could be expected. The other concern is that price could be on Elliott Wave 5 (great) or Wave B (which could be expected to see price collapse back to the lower channel boundary. All this means is that someone trading this stock needs to see that there are alternative outcomes that they shouldn't ignore is price starts to pull back.
I normally close out trades near targets (as in the $35.70) because price usually reverses strongly from those levels, but in this case I’ll hang in there (within reason).
