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Fan Yang

Albemarle Corp. (ALB) Attacking Critical Support; Can't Rely on Buying Here

Chemicals company Albemarle Corp. $ALB is a bearish mode and is attacking a critical support around $72.40-$75.15. I don't think we should rely on support here outside of some near-term bounce. I think we should anticipate a break down.

ALB Weekly Chart

(click to enlarge)

Bearish Trend vs. Support:
- Looking at the daily price chart, we can see that price is paring the rally that started in 2015 and into late 2017. Price essentially went from just above $40 to just above $140 per share.
- Note that price action remains bearish in 2019 after the initial recovery to $90.
- Price essentially respected the previous consolidation support area as resistance. 
- It held under the 200-week simple moving average (SMA) for the most part.
- The RSI has been holding under 60 after it almost tagged 30 in early 2018. 
- Bearish weekly candles have been much more decisive (larger) than the bullish ones.
- These are all signs that bears are still in charge, and should be able to break the key support area around $72.40-$75.15. 
Bearish Target:
- If price breaks below $72, we can be looking at a dip towards the middle of the previous consolidation range, around $57 - let's say $60.
- I would limit my bearish outlook to this area for now. Furthermore, the $80 level should become resistance. Showing resistance here would further confirm that bearish outlook.

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