ALB breaks below Tuesday's low
Albemarle Corporation (ALB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ALB ended Wednesday at 97.80 losing $0.59 (-0.6%), slightly underperforming the S&P 500 (-0.46%). Closing below Tuesday's low at 98.33, the market confirmed its breakout through the previous session low after trading up to $0.63 below it intraday.
Daily Candlestick Chart (ALB as at Sep 16, 2020):
Wednesday's trading range has been $1.89 (1.91%), that's below the last trading month's daily average range of $3.01. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ALB.
Even with a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on September 10th, ALB actually gained 1.56% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 99.81 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 100.31 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Albemarle. Out of 91 times, ALB closed higher 57.14% 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 58.24% with an average market move of 0.52%.