ALB finds buyers at key support level
Albemarle Corporation (ALB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ALB ended Thursday at 60.46 edging higher $0.44 (0.73%), significantly underperforming the S&P 500 (6.24%). Trading up to $2.80 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ALB as at Mar 26, 2020):
Thursday's trading range has been $3.52 (5.87%), that's below the last trading month's daily average range of $6.07. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ALB.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 57.20 earlier during the day, Albemarle bounced off the key technical support level at 57.31 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on March 13th, ALB actually lost -13.31% on the following trading day. Prices are trading close to the key technical resistance level at 65.19 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 63.86 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Albemarle. Out of 418 times, ALB closed higher 59.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.46% with an average market move of 0.33%.