20 mins.
That’s how long it took for me to park my car.
No, it’s not because I’m horrendous at parking if you’re wondering.
Singapore has eased its COVID-19 measures and people are going out in droves. This led to a long waiting time when I could easily spot empty parking lots before.
What was the longest duration you’ve spent waiting to park your car?
It’s also heartening to see businesses pick up as tourism fuels demand for many goods and services. This brings me to our stock pick of the week – Albemarle Corporation.
Albemarle Corporation develops, manufactures, and markets specialty chemicals worldwide used in automobile, consumer electronics, and pharmaceutical industries (just to name a few). Albemarle Corporation works hard in the background to produce the things we need to enjoy a high quality of life.
So shall we explore more about this stock pick of the week?
Performance Of US Stock Market vs Albemarle Corporation
What can you tell from the comparison table above?
The overall US stock market, S&P 500 futures, is and has been in a downtrend since Jan 22. Moreover, the overall US stock market declined last week.
How did the performance of Albemarle Corporation’s shares (ALB) fare?
ALB was in a downtrend before turning up in May 22 as shown below.
Its bullish momentum continued, ending last week higher than where it had started at.
ALB has proven itself to be much stronger than the overall US stock market. Thus, ALB meets the 1st criteria of our stock pick of the week.
How Explosive Is ALB?
Ok, so ALB is stronger than the overall US stock market. But has its price behavior been explosive? After all, you’ll want to optimize your trading capital.
Before we dive into the explosiveness of ALB’s share price, you’ll need to know the background of ALB to put things into perspective.
ALB enjoys a market capitalization of almost $27.7b.
Yes, it’s a large capitalization company. This suggests that its price movement may not be as explosive as hoped for. Or is the opposite true?
Contrary to popular belief, stocks with a large market capitalization can also exhibit explosive price movements.
Here, ALB’s up moves have proven to be explosive, with its recent 2 moves measuring 25.2% and more!
I think that the current up move isn’t done yet, and it’s already more than 9%!
Do you know what the next step of our analysis is?
Yes, let’s proceed to uncover ALB’s hidden key price levels.
Key Price Levels
With the support and resistance zones of ALB plotted, we can tell that there’re 2 resistance zones at $245 and $265, and 1 immediate support zone at $207.
It’s important to view support and resistance zones as zones where the buying and selling pressure is high. This implies that the price of ALB may not be able to break out of the $245 zone. In the case that it does, the next price obstacle area is $265.
The same concept applies to its support zone at $207. If the price of ALB falls, there’s a chance that the price of ALB may bounce up. If not, it could fall through $207 into lower territories.
Now that you’ve considered the overall US stock market, ALB’s performance and the explosive nature of its shares, and identified the potential price obstacles, it’s time to decide on the strategy.
The Strategy You Can Use To Trade ALB
Here, you’ll be planning your entry, profit taking, and stop loss levels.
In every trading strategy, you must know your entry, profit taking, and stop loss levels to stay in business. Yes, trading is a business indicating that the strategy you use must be well formulated too.
Using The Art of Explosive Profits framework (AEP for short), I’d want the resistance area at $245 to be breached and turn into a support area. I’d also want the price of ALB to pull back within the next 2 weeks, before another explosive up move.
As its name suggests, you’ll be looking to catch an explosive move in a short period of time consistently.
In the AEP course, you’ll be coached on how to search for strong stocks like ALB instead of relying on news and hear-say.
You’ll also become fluent in reading charts to shortlist stocks that are about to have an explosive move.
Finally, you’ll learn how to identify the optimized entry, stop loss, and take profit level to capture these explosive moves that you’ve been waiting for (in a safe manner, of course)!
Have a look at the AEP framework and add this explosive trading strategy to your arsenal to seize more trading opportunities.
Why Is ALB The Stock Pick Of The Week?
Source: https://www.albemarle.com
ALB is the stock pick of the week for a couple of strong reasons.
While the US stock market was declining, ALB’s share price was rising in the past month, indicating that ALB is much stronger than the US stock market.
With a market capitalization of more than $27b, the share price movement of ALB isn’t sluggish. This is makes ALB a prime candidate for a quick swing using the AEP framework.
In just the past 6 months, ALB has had 2 spectacular up moves, ranging between 25.2% and 28.6%. Another up move is taking place as you read this.
I know that you’re excited. Before you splash the cash on ALB, you need to know that I’m not a financial advisor. So please take what you’ve read here for edutainment.
Otherwise stated, all photos and images are from unsplah.com, pexels.com, pixabay.com, and tradingview.com.
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