Albemarle (ALB) – Lithium Giant Just Cleared a Major Hurdle
Albemarle has finally shown signs of life after years of downward pressure, and the timing couldn’t be more interesting. For most of 2023, 2024, and even into 2025, every countertrend rally into the 200-day moving average was rejected. That persistent failure was a clear reminder that the long-term trend was still pointing lower.
But August brought a meaningful shift. Albemarle managed to push above its 200-day moving average not once, but twice. The first attempt in July fizzled out, but after bouncing off support at the 50-day moving average, the stock came right back. This time, it not only retested the July high but has powered through with stronger momentum. That tells us the character of the stock may finally be changing.
Momentum indicators back up the case. While mid-August showed a bearish divergence between price and RSI, the latest rally came with improving strength. The Chaikin Money Flow also flipped back into positive territory, a sign that institutions may be quietly accumulating shares. Even the accumulation-distribution line is trending higher, which reinforces the idea that this breakout is being supported by volume, not just price action.
Perhaps most importantly, Albemarle’s point & figure chart has triggered a double-top breakout pattern. That’s a textbook bullish development, suggesting the uptrend should be respected unless proven otherwise. With the stock holding above its 200-day moving average and technicals confirming a shift, the risk-reward setup here looks favorable.
In short, Albemarle has finally broken through a wall that has held it back for nearly three years. As long as it maintains support above the 200-day and momentum stays healthy, this lithium leader could be entering a fresh bullish phase with room to run.
