Alcoa's hostile bid for Alcan should make AL an interesting play in the near term, so I added it to my usual suspects list last week. Friday we had problems with NASDAQ quotes in the early going, so I had no choice but to focus on NYSE stocks. AL was a low risk base and break setup. Once price took out the low hanging 200 MA, it was easy money.
VLO was gapper with a base setup in line with the ORH. I took a partial as price rallied up to the 62% Fibonacci extension of the previous day low to the ORH. I was stopped out on the balance with a tight stop.
AL chart - 5 minute timeframe, VLO 10 minute timeframe.
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