Stock Chart MOS

Posted by downtowntrader | 8/28/2008 09:12:00 PM | 0 comments »

Stock Chart Analysis MOS

The Mosaic Company (Public, NYSE:MOS)

I mentioned last night that MOS was on my short watchlist, but that I wanted to get a feel for the markets before making a trading decision. Well, I noticed quite early today that "Ag" stocks were showing weakness, as the general markets were exhibiting impressive strength. I also mentioned on a few occasions how early cycle sectors were starting to get some inflows and that late cycle sectors were being sold. It's not as easy to pick up these rotations on a typical day, but on strong trending days these patterns tend to stick out. Today, while Financials and Transports rallied, Agriculture stocks were down.

This, coupled with the fact that MOS reversed at its 200 day sma and had a bearish engulfing candle that took out a few days worth of candles was enough for me to establish a short position in the name. While I may be early, my expectation is that MOS will move lower over the next few weeks and make new lows. It has broken it longer term uptrend and then broke down under a lateral consolidation. Even the weekly chart is showing some topping patterns. For more analysis on a topping pattern, check out this post on POT. As always, perform your own due diligence.

Good Trading,


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