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Alcoa (AA) - Get Alcoa Corporation Report  was up more than 1% in the early going as its powerful rally off the June lows continued. The stock is getting a nice bump from Wednesday's second-quarter report, but heavy resistance near the April high may prove difficult to clear. AA has had a problem following through after strong post-earnings moves of late. Thursday could prove to be the same.

Alcoa is currently working on an impressive rally. The stock put in new 2017 lows in late June after piercing strong support near the $30.50 area. Further loses were minimal, though, and AA quickly regained its footing. By the start of July, it was clear the area near $30.00, which had held the April and May lows as well, had marked an important bottom. At this morning's high, Alcoa was up more than 25% from the June lows and had left layers of support in place.

In the near term, investors should view AA as a buy on weakness. The stock's pattern of fading immediately following earnings, as it did late January and late April, has offered patient bulls lower-risk entry opportunities.

If this post-earnings behavior plays out once again, AA will likely dip back down to a key support zone between $35.40 and $34.00. Once a post-earnings shake is complete, AA will be set up well for a run up to $40.00 and new highs for the year.

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At the time of publication, Morrow was long AA.