Potash Corp. of Saskatchewan, Inc. the world’s largest fertilizer enterprise, produces three primary plant nutrients – potash, phosphate and nitrogen primarily sold in the United States and Canada. I’ve watched this company for quite a while as part of the global food shortage theme ( yes, I know Cramer has rattled on about this too). But unlike Deere tractors (DE) farmers Must buy fertilizer every year. That said there may be a global glut of some of these commodities if a recent production cut from POT competitor Mosaic is to be believed: http://blogs.barrons.com/stockstowatchtoday/2011/12/29/mosaic-slides-after-announcing-production-cut-pot-agu-higher/?mod=yahoobarrons
Looking at the chart you’ll notice POT just bounced off a three year trend line and within the bottom line of it’s lower one year channel. Also notice that MACD is starting to flatten out. What isn’t happening is an upturn in the RSI.
Any trade here should be made with a hard stop below that trend line and /or S1 weekly support at $36.57
Don’t buy POT based on this post – or Hot looking Hippy Chicks will blow smoke in your face