Is Albemarle Trying to Break Out?

NYSE:ALB   Albemarle Corporation
Alternate energy has shown relative strength since the Inflation Reduction Act took effect in August. Lithium provider Albemarle is a potential beneficiary.

The first pattern on today’s chart is the trendline running along the highs of November and June. ALB ripped through that line three weeks ago before pulling back. It’s now attempting to bounce at the same area, which could mean old resistance has become new support.

Second, consider how the stock made a new 52-week high in late August. It was one of only eight members of the S&P 500 to achieve that feat at the time, according to TradeStation data.

Around the same time, ALB’s 50-day simple moving average (SMA) rose above its 200-day SMA -- a potentially bullish “golden cross.”

Next, the series of higher lows since March may reflect accumulation by longer-term investors. This longer-term trend is also visible in basing patterns on the weekly chart below.

Finally, the most recent pullback dragged ALB’s stochastic oscillator into an oversold condition.

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