It may be time to trade the short side of Albemarle (ALB) now.
On January 12, we noted, “Every time Albemarle (ALB) gets this oversold, it’s a buy. 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’s happening again now.”
Since that note, ALB exploded from $240 to about $292. That’s a solid return in weeks.
Now, it may be time to trade the short side of ALB—again based on history.
If you pull up a two-year chart of ALB, you can see it’s seeing heavy resistance at current prices. Plus, you can see the over-extensions on RSI, MACD, and Williams’ %R. Just as these indicators pinpointed a reversal higher, they’re now telling us to expect a reversal lower. In fact, these indicators predicted a pivot lower twice in May, August, September, and possibly again now.
The beauty of such a simple technical setup is that it can be used with any stock, ETF, or index.