Alcoa Corp Shares Bounce From Oversold Levels, Down 45% In Two Months

Alcoa Corp (ASX: AAI) shares have seen a recent bounce after a significant 45% decline over two months, driven by concerns over aluminium market surplus and leverage from a major acquisition. Despite a record second-quarter performance, investor skepticism regarding the US$4.1 billion acquisition of South32's assets has overshadowed operational strength. The bounce appears to be a relief rally rather than a fundamental shift, with technical indicators still showing oversold conditions and analysts maintaining an average target price significantly above current levels.