Alcoa Corp (NYSE:AA) recently reported a strong third-quarter due to higher aluminum prices. However, in its chart, a level of support has formed. If the stock falls through this level, a breakdown is expected. Read more to learn how to profit from this trade.Alcoa Corp (AA) is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and the manufacture of primary aluminum. It is the world's largest bauxite miner and alumina refinery by production volume, and its profits are closely tied to prevailing commodity prices along the aluminum supply chain.
The company recently reported a very strong third quarter. In fact, AA reported its highest-ever quarterly net income of $337 million. It also generated $3.1 billion in sales due to higher alumina and aluminum prices. AA is the world’s largest producer of alumina, which is used to produce aluminum.
AA had $1.4 billion in cash as of the end of the third-quarter, compared to short term debt of only $1 million. In the third quarter, earnings rose from -$1.17 to $2.05 and sales jumped 31% year over year. Analysts expect sales to jump another 43.4% year over year in the current quarter, while earnings are expected to surge 765.4% year over year in the same period.