Q2 STOCKS TO BUY

Lithium Mining Stock Rebounds from Last Week's Slide

The stock hit a one-year low on Friday

Deputy Editor
Apr 24, 2023 at 10:49 AM
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Albemarle Corp (NYSE:ALB) is rebounding today, up 4.3% at $181.29 at last glance, following Friday's 10% drop. Reports that Chile was considering nationalizing its lithium mining industry sent lithium stocks reeling, however, Albemarle CEO Kent Masters told CNBC on Friday that it would not impact the company's existing mine and contracts. 

ALB's Friday gap lower and fourth-straight daily loss had it hitting a one-year low of $171.82. Still on the short sell restricted (SSR) list today, the equity is down 16.6% year-to-date. The shares look ripe for a short-term bounce, too, per their 14-day relative strength index (RSI) of 12.4, which sits firmly in "oversold" territory. 

In the options pits, calls have been much more popular than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ALB's 10-day call/put volume ratio of 2.07 ranks higher than 92% of readings from the past year. 

It's also worth noting that short interest has been on the rise, up 13.9% in just the most recent two-week reporting period. Now, the 6.24 million shares sold short account for 5.3% of the stock's available float. 

 

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