The technical chart specialists have said that as long as 26.1 stays as support this move higher should be supported.
"The RSI is above its neutrality area at 50. The MACD is below its signal line and positive. The stock could retrace in the short term. Moreover, the stock is above its 20 and 50 day MA (respectively at 27.2 and 24.52)," say analysts.
Nokia Corp: Charts are calling for more gains
Another tech sector stock that is tipped to head higher is Nokia Corporation (ADR) (NYSE:NOK).
The Wall Street listed stock is tipped to head towards 5.13, provided support holds at 3.69.
Commenting on NOK's technical setup, Trading Central say: "The RSI is above its neutrality area at 50. The MACD is positive and below its signal line. The stock could retrace in the short term. Moreover, the stock is trading above both its 20 and 50 day MA (respectively at 3.95 and 3.32)."
European trade gets off on a firm footing
"Firmer footing for European markets this morning following a two-drop this week, providing value hunters with the opportunity to enter the market at lower levels. Alcoa’s encouraging 4Q numbers have lifted spirits across global markets, soothing some of those concerns in the previous session of a poor showing from the resource giant," says Ishaq Siddiqi at ETX Capital.
Siddiqi does caution that it is still 'early days' for US earnings season with investment banking giants (JPMorgan, Goldman Sachs, Bank of America and Morgan Stanley) reporting 4Q figures next week, but the positive tone has certainly been set, particularly when it comes to outlook statements.
"Putting the headline figures from Alcoa aside, the optimistic forward guidance regarding growth in aluminium demand this year supports the China and emerging market recovery story," says Siddiqi.