Potash Amazes Us with New Highs
Potash Corp (POT) is a stock I have been watching for over a year now, and it has been an amazing ride up to new life-time highs hit today.
Potash is a large fertilizer company that has been increasing in market share and share price over the last few years, and now traders are becoming aware of this stock’s power.
Look at the volume explosion all through 2008 (along with the steady price trend):
I would recommend using your own style of analysis – be it fundamental or technical – in assessing what you think of this stock and its industry.
The 20 week moving average has served to contain price through virtually all pullbacks. Also, the three key moving averages are in the most bullish orientation possible.
Let’s peek at the recent action on the daily chart:
This is actually a very volatile stock, though the weekly chart may hint otherwise. This stock opens with numerous gaps in both directions, further increasing risk.
However, traders who have been patient and solid with this stock have been rewarded with excellent returns.
Even in a bear market in the broader stock market, there are still stocks and industries experiencing rampant bull markets!
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