Tradersweekly

Albemarle - Swing trade opportunity

Short
NYSE:ALB   Albemarle Corporation
Today, an opening gap appeared on the daily chart of Albemarle ; as a result, this offers an opportunity for a simple trade setup. We are currently bearish on Albemarle and expect a complete retracement of the opening gap. Therefore, we would like to set a price target for Alb at 198.44 USD.

Illustration 1.01
Albemarle opened up almost 7%.

Technical analysis - daily time frame
RSI and Stochastic turned bullish . DM+ and DM- performed bullish crossover. However, we think these are false bullish signals. We conclude this from a low ADX value. The daily time frame is deceptive.

Illustration 1.02
The picture above shows the short-trade setup.

Technical analysis - weekly time frame
RSI , MACD , and Stochastic are all bearish . DM+ and DM- perform whipsaws, and ADX contains a low value. That indicates the presence of a very weak trend. Overall, the weekly time frame is bearish .

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.


Trade closed: stop reached: Stop-loss was reached. Re-entry of short-position (with the same setup) is possible if the price reverses to the downside.
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