Swing Trade Idea (ALB) – January 05, 2023
Our bullish trade for Thursday, January 5th is Albemarle Corporation (ALB). ALB is part of the Materials Sector, which has performed at 0.46% over the last week as it is bouncing higher off an area of support. ALB is overperforming relative to its sector at 4.39% over the same period.
ALB found support at a key level of $220, from where it is bouncing higher. As this is a counter-trend trade alert, we expect to see ALB continuing higher as it is currently in an oversold state, providing a good risk/reward bullish entry.
As a close, if ALB were to trade below $210 for multiple days, this would invalidate our analysis and we consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $24.30.
