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Swing Trade Idea (ALB) – June 16, 2022

Our bearish trade for Thursday, June 16th is Albemarle Corporation (ALB). ALB is part of the Materials sector, which has performed at -5.44% over the last month.

ALB recently broke below a key support level of $223, and it respected this level on the retest. We, therefore, expect this level to hold as resistance and possibly retrace lower, which provides a good risk/reward bearish entry. 

As a close, if ALB were to trade above $225 for multiple days, this would invalidate our analysis and focus cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $13.10.