Send me real-time posts from this site at my email
Fan Yang

Albemarle (ALB) - Critical Support Holds, For Now

We recently noted that Albemarle $ALB was in a bearish swing attacking a critical support just above $72. The 5/2 session showed a strong rebound that might extend into a reversal in the short-term. But I don't think there will be much upside while there is likely more downside risk ahead.

ALB Daily Chart

(click to enlarge)

Bearish Trend vs. Support:
- Note that the prevailing trend and price structure is still bearish. 
- After the multi-month rally, ALB retreated from the 200-day simple moving average (SMA). It also respected the bottom area of the previous consolidation range.
- When we look at the weekly chart, we can see that $72 is indeed a critical support/resistance pivot.
- But in this chart, we also see that price is holding under the 200-week SMA. The cross-under followed by rejection as resistance is known as a bearish slingshot signal. 
- I think there might be some short-term upside to $80 if the overall market is bullish as well.
- But, I think ALB will eventually break below $72, $70 and open up the $57-$60 area, which is the middle of a previous multi-year consolidation.

ALB Weekly Chart

(click to enlarge)

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue