Potash POT Analysis 12/17/08 - Technical Analysis

The following is technical analysis for Potash ( POT ). The chart you see is from weeks ago before Potash first closed back over the 10 day moving average causing this huge move up in share price to $80 today. I will have a new POT Chart tonight showing this analysis but due to stockcharts.com regulations, you can't take snaps during trading hours.

Potash Technical Analysis December 17, 2008

As you can see, Potash closed back over the 10 day moving average several weeks ago just like previous times and exploded to the upside. It was important not to be early because there were several times where it almost closed over the 10 day, but failed, only to take out the previous lows. The bounce off of $47.54 was a huge up volume move and buyers were chasing Pot into the close. This was the signal that some of the shorts were starting to cover. The next day, we got confirmation of a close over $57 which was the 10 day moving average. While this was a huge $10 move in two days....it was just the beginning of Pot's move which has happened two other times in the past several months.

Potash has made a major move so I would be cautious about buying above $75. Pot has closed back over the 50 day moving which is very bullish, so pullbacks to the 10 day moving average should be bought. POT has resistance from $81.54 - $85 and if these levels are cleared the next major resistance level is the Election High of $94.98. Pot has support at the $70 level where it stalled before making this last move higher as well as the 10 day moving average which is at $65.37. The 10 day moving average will be moving higher each trading session that goes by so keep that in mind. $47.54 will turn out to be a long term bottom for Potash and we all know, as evident in the past few weeks, the biggest moves come right after a stock bottoms.

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Trading Potash ( POT ) today

Today the Ag stocks are getting crushed because Mosaic ( MOS ) missed earnings by about 10%...but earnings were still pretty incredible compared to last year. POT and MON are getting drilled as well. All of a sudden everyone is throwing out Ag stocks!

POT has hit a low of $95.24 today so if you go long....use that as your stop.

Potash POT News 9/12 - Pot stock ripping higher Friday

This morning we have Potash ( POT ) ripping higher after a strong reversal yesterday. Potash has been an ugly stock over the past month or so. Looking at the Pot chart....we have that resistance at about $170 so you may want to try and short it there. Buying dips below $140 would be a good buy. CNBC Fast Money's Guy Adami pointed out that POT was trading like Potash prices were $400 a ton while they are really at $900 per ton. Could this be the bottom for the Ag stocks? I seem to think so! The key to making quick and huge gains in the stock market are buying stocks on the turn rather then catching a falling knife. Patience is the key! Buying stocks on the turn is one of the hardest things for stock market traders to do. The fear of " I'm going to miss the run if I don't get in " leaves most investors caught in a downward spiral lower, only to sell out break even when the stock actually starts " The Turn " higher.

There are price targets of $280 per share out there. Once POT closes back over $190, things will really get rolling again!

Don't try to catch falling knives! The stock market is always right and if a stock is going down, its going down for a reason! Catch the turn back up!

Potash ( POT ) stock ready for a bounce? POT Technical Analysis 8-13-08

Last week I wrote about Potash when it was on the verge of breaking that key support level of $190. POT has wrestled with that level many times over the past few months and when the stock finally closed below this level, all hell broke loose! Potash and all the AG stock were beaten down with the rest of the commodities stocks.

So what now? Well, Potash has some major ground to gain back before it can be a stable stock again. This breakdown in Potash shares was the first MAJOR breakdown in a few years. The stock is damaged big time. But are investors missing something? Are they missing the fact the demand for Potash as a product remains strong? Are investors missing that POT stock trades at only 7.8 times 2009 earnings?

Looking at my POT technical analysis stock chart, we have that support now at $157 which will be very crucial. $175 is also your line of resistance as this was the low a few months ago before it ran to $240. If Potash can close above $175 & $190 it will be back! Until then, buy the dips and sell the rips!