ALB closes above its opening price after recovering from early selling pressure
Albemarle Corporation (ALB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
ALB finished the week 11.02% higher at 68.11 after gaining $0.14 (0.21%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.93 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on May 14th, ALB gained 2.75% on the following trading day. 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 May 22, 2020):
Friday's trading range has been $1.55 (2.29%), that's far below the last trading month's daily average range of $2.78. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ALB.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the close-by swing high at 69.79 where further buy stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Albemarle. Out of 722 times, ALB closed higher 54.16% 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 58.73% with an average market move of 0.77%.