When Albermarle Reaches this Point, It’s a Buy

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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.

In fact, that technical strategy works with just about every stock and index on the market.  ALB allows us to show you that because of how often it happens.  Since 2022, it happened in January, February, late April, July, and October, and it’s happening again now.

Better, the lithium story isn’t cooling off at all.  As noted by S&P Global, “Lithium prices will likely see strong support in 2023, with supply expected to remain tight amid bullish demand from the accelerating adoption of electric vehicles across the globe, though some price correction could be expected, led by a slowdown in the Chinese market.”

Also, by 2030, 125 million electric vehicles could be on the road.  Two, major automakers are starting to abandon internal combustion engines for EVs. However, for millions of EVs to hit the roads, each will need around 22 pounds of lithium. Unfortunately, the world is in short supply, with massive demand.

Even the International Energy Agency is warning that “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.”

Again, when ALB gets weak, it’s a buy.