Time frame: the short to medium term
big picture view:
Albemarle Corporation is a US company that in the sectors of plastics and special chemestry.
Since July 2014, a clear downward trend has been established. Note the very strong downward movements compared to the upward movements or in this case corrections. The price is trading under the 200 SMA and the RSI is overbought.
These are two additional features that speak for short setups. The down-trend line emphasizes once again the clear trend (figure a).
Listed are various scenarios and targets. Scenario 1, figure b / c: a triangle can be seen in figure b that was breached to the down side. The correction of the last movement is slowly approaching from the bottom of the trend line. This as where the main trend line is running from the top down.
The green square indicates a point where the two lines meet and the price could possibly bounce off of. Above this point, the upper triangle line and the 200 SMA line, could act as additional resistance. Looking at the RSI, the plotted points are at the same height as when the price has turned in the past.
In figure c, the arrows indicate the possible course of the price action. The main target is in the range of 48 to 46 USD. The trader has several options to choose from to enter the market. Two possibilities, for example trading the rebound or to wait for on a candle formation to enter short.
Scenario 2, figure d:
An alternative scenario would be if the value breaks out above this resistance. Then we could trade the stock long. The green squares indicate the important areas that need to be breached. Long targets are in the range of 65, 70 and 76 Dollars.
ALB is a stock which is definitely considered short at the moment from a chart technical stand point. You can see the strength in the downward movements that would bring a trade into profit quickly. The trader can go short to an approximate 15% target. For more safety, partial sales are recommended. The trader should also pay attention to various company earnings and reports that could move the price considerably.
Disclaimer: Disclosure according to § 34b WpHG due to potential conflicts of interest:
The author is not invested in the relevant securities or underlying securities at the time of publication of this Analysis.