Albemarle Corporation $ALB is consolidating after a sharp decline that started in November 2018. ALB Daily Chart (click to enlarge) Consolidation:- Price fell from around $108.75 a sharedown to $72.45 before finding support.- This support area is actually a critical support/resistance pivot area (refer to weekly chart below). - Price has been consolidating between roughly $72.45 and $79. - A break above $79 would open up the $88 area, another support/resistance pivot. - Now, let's say instead of waiting for a breakout, we respect the current support before it is such a critical one.Reward to Risk:- Let's say we set up a buy at $74.50. - A target should be below $72. Let's say $71.30.- The target could be $87. - This trade has a reward to risk profile of 3.9:1. - I think this scenario is actually lower than 50% probability because of the overall market risk that is still looming. - Let's say the probability is 33.3% or 1/3. - A 3.9:1 reward to risk trade that succeeds only 1/3 of the time, would still edge out a profit after execution slippage and fees. - This is a trade I will be making. - BUT I will be using 1/2 my usual position size because I want to save dry powder for another leg in the market contraction that started in October 2018. ALB Weekly Chart (click to enlarge)