Pay close attention to oversold lithium stocks, like Albemarle (ALB).

After dropping from about $240 to $209.13, the ALB stock appears to have caught strong support and could pivot higher again shortly.  It’s also oversold on RSI, MACD, and Williams’ %R, and could potentially run back to $240 on the strength of the lithium story.

Remember, lithium will remain a hot commodity.

For one, supply will not be able to keep up with demand, as the world goes green. In fact, according to Stellantis CEO Carlos Tavares, there’s not enough lithium to go around. Plus, analysts project that demand to jump about 40x over by 2040 thanks to electric vehicles. Even the Biden Administration is still encouraging the development of lithium reserves, as major automakers become concerned about shortages, and an inability to ramp up EV production.

Even oil giants see the potential of the lithium boom. Exxon Mobil, for example, just bought drilling rights for lithium in Arkansas. Chevron is also considering opportunities to produce lithium with all of the demand.

In short, use weakness as an opportunity in lithium stocks, like ALB.