During Tuesday's Lightning Round segment of Mad Money one caller asked Jim Cramer about Albemarle (ALB) . "This is a great company with terrific growth. I think it's worth buying," said Cramer about the chemical company.
We reviewed the charts of ALB on July 29 where we wrote that "If you are still long ALB -- great. If you are looking to go long ALB then wait for a dip into the $200-$190 area and then risk to $175 on new and existing longs. The $253 area is our next price objective."
Now let's look at at some updated ALB charts.
In the daily bar chart of ALB, below, we can see that the shares have continued higher from late July reaching the $240 area before a pullback. Prices are still above the rising 50-day moving average line as well as the rising 200-day line.
Trading volume has increased the past three months and the On-Balance-Volume (OBV) line has been rising the past 12 months. The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside for a take profits, sell signal.
In the weekly Japanese candlestick chart of ALB, below, we see a positive picture. Prices are in an uptrend above the rising 40-week moving average line.
The weekly OBV line shows a long rise to confirm the price gains but we also see a recent pullback in the OBV. Too early to suggest that the OBV line is reversing direction. The weekly MACD oscillator is bullish.
In this daily Point and Figure chart of ALB, below, we can see an upside price target in the $265 area.
In this weekly close-only Point and Figure chart of ALB, below, we can see a $385 price target.
Bottom-line strategy: Continue to hold longs. Raise stop protection to $195 from $175. The $253 to $265 area is our first price target. $385 is possible longer-term.
