PPR: Pocket Pivoting Potash (POT) and Agrium (AGU) Lead the Fertz on Friday
Potash Corporation of Saskatchewan (POT) flashed a buyable pocket pivot off of its 10-day moving average on Friday. POT is showing strong earnings growth over the past two quarters of 224% and 154%, respectively, and is obviously a member of the very hot fertilizer group. We notice that POT also flashed a big buyable gap-up move in the middle of August, and the recent pullback earlier in this past week never violated the intra-day low of that initial buyable gap-up day, which we see as constructive. This looks buyable here, using the low of the gap-up day as your reference for a stop.
We also like the pocket pivot buy point that fertilizer stock Agrium (AGU), another leader in the group, flashed on Friday. This was also a buyable gap-up move, as the stock traded up 5.68 on Friday, far exceeding the 0.75 x the 40-day Average True Range of 2.09, or roughly 1.50 requirement for a buyable gap-up move. This is buyable using the intra-day low of the gap-up day at around 78 as your downside guide for a stop.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.