A support line has formed in the chart of Albemarle Corp. (NYSE:ALB). If the stock falls through this line, a breakdown could occur. Read more to learn how to take advantage of this trading opportunity.Albemarle Corp. (ALB) is the world's largest lithium producer. The company produces lithium from its salt brine deposits in Chile and the U.S. and its hard rock joint venture mines in Australia. It is also a global leader in the production of bromine, used in flame retardants, and a major producer of oil refining catalysts.
The company should benefit from its actions to boost its global lithium derivative capacity. Plus, its costing cutting actions bode well. However, Lithium could see headwinds due to weak pricing and lower automotive production due to the global chip shortage.
ALB has a solid balance sheet with $824 million in cash as of the end of the second quarter, compared to only $1 million in short-term debt. Earnings have grown an average of 25.2% over the past three years but are expected to fall 29.4% year over year in the third quarter.