Every time Albemarle (ALB) gets this oversold, it’s a buy, we said on January 12.
In fact, “If you pull up a two-year chart of ALB with RSI, MACD, and Williams’ %R, you can see the opportunity. Take a look at what happens to the ALB stock every time RSI dips to its 30-line, when MACD drops well under its mean, and when Williams’ %R drops to 80 or below. About 85% of the time, the ALB stock will pop. Since 2022, it happened in January, February, late April, July, and October…”
And it just happened again.
In fact, when we brought it to your attention, ALB traded around $237. It’s now up to $260.73.
Not bad for a few days. However, any trader that jumped into the trade may want to consider taking some wins off the table. That’s because our indicators are now calling for a near-term reversal. For one, the ALB stock is struggling at double top. Two, RSI, Fast Stochastics, and Williams’ %R are stretched in overbought territory. When that happens, it’s typically best to heed the advice of the technical setup.
ALB can always be bought again when the patterns say the bottom is in again.