After a recent indicator spot-check, we are noting that shares of Albemarle Corp (ALB) are showing a 7 day ADX signal of Buy. This signal is generally used to determine the market trend. The 7-day average directional strength is Strong. This trend strength indicator measures the signal based on historical performance where minimum would represent the weakest, and maximum would indicate the strongest. The 7-day ADX direction is currently Strengthening. This signal shows whether the Buy or Sell signal is getting stronger or weakening, or whether the Hold is heading towards a Buy or Sell.
Investing in the stock market has traditionally offered bigger returns than other types of investments. Along with the opportunity for higher returns comes a higher amount of risk. Stocks can be exposed to both market risk and business or financial risk. Market risk may be evident when the overall market takes a nose dive. Investors may hold stock of a company that has been performing great, but due to poor market conditions, the stock decreases in value. Investors may look to offset this risk by investing in other vehicles that don’t tend to move together. The business risk with stocks involves factors that may cause a company to perform poorly. This may include bad management, heightened competition, and declining company profits. Investors may try to limit this risk by creating a diversified portfolio including stocks from different sectors.
Checking in on the 20-Day Bollinger Bands signal, the current reading is Sell. This short-term indicator may be used to help spot oversold and overbought conditions. The current direction of the signal is Weakest.
Investors may be interested in viewing some other important technical stock indicators for Albemarle Corp (ALB). Investors are often focused on share price support and resistance levels. The support is simply a level where a stock may see a bounce after it has fallen. If the stock price manages to break through the first support level, the focus may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it reaches a certain level of resistance. After a recent check, the stock’s first resistance level is 90.15, and the second resistance level is 91.26. On the other end, investors are keeping an eye on the first support level of 87.59, and the second support level of 86.14.
Turning the focus to earnings, we note that Albemarle Corp (ALB), for the most recent period, the company posted quarterly EPS of 1.31. The trailing 12 month earnings number is currently 5.31. The company’s EPS growth over the previous quarter clocks in at -3.68%. The EPS metric is frequently used to measure a company’s profitability based on each outstanding share of common stock. When a company reports earnings results, the majority of the attention is on whether or not the EPS estimate is hit or missed. Wide gaps between estimates and actual reported figures may result in above normal stock price fluctuations after the earnings report.
Focusing in on some other data, we can see that the stock has a weighted alpha reading of -28.60. The weighted alpha gauges how much the stock has increased or decreased over the period of one full year. The weighting puts higher emphasis on more recent activity providing a more relevant measure for short-term technical analysts to use. A positive weighted alpha reading indicates that the stock has risen over the past year. A negative reading would indicate that the stock is down over that same time period. Technical traders often use the weighted alpha to help discover stocks that are building momentum.
Investors often hear the saying “buy low, sell high”. This may seem highly obvious to anybody looking to get into the stock market. Even though investors typically know they should do this, novices tend to do just the opposite, buy high and sell low. Often times, amateur investors will get carried away when a stock is trending higher. They may attempt to get in on the stock after a big move with hopes of the stock going higher and an overall thought that relates to the fear of missing out. Often times, investors will find themselves in a precarious situation when this occurs. They might have taken a chance on a stock that maybe was too good to be true. Investors may regret buying after the big move when the price has far exceeded the underlying value. Closely watching the fundamentals may help investors avoid getting into sticky situations such as buying too high.