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| Symbol | Sector | Return | Exposure | Trades | Last Trade | Status |
|---|---|---|---|---|---|---|
| POT | Specialty Chemicals | -7.12% | n/a | 4 | 11-Aug-08 | Prior Holding |
10-Aug-08
Agri-stocks could bounce here
Holding Rationale for POT.
Below is a 6 month chart of POT which shows a potential bounce of it’s current 200 moving average. Here you can see the initial drop 4 days ago with the retest on Friday. Agriculture stocks should rebound soon as the world isn’t going to stop eating all of the sudden. These stocks had such a run that this sell off had to be expected on some level. The long term trend has not been interrupted at all.
What I like even more about this action is the 2day-5Min chart, which shows a gap down on Friday testing the previous low, and then re-testing that test. It’s significant that we didn’t sell off on Friday afternoon past the previous low that morning. I’ve seen this behavior in stocks that are in the process of bottoming. I will be watching the open and like opening a position here with a stop below Friday’s low of 173.53, but it all depends on where the markets open of course. If these stocks gap up, which I’m inclined to think they will, I will wait until the afternoon to take positions if I like the chart behaviour.
Tagged Stocks: POT
Posted at 17:29 in Holding Rationales | Permalink | Comments () | Top
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