Stock Chart POT

Posted by downtowntrader | 8/03/2008 10:01:00 PM | 0 comments »

Stock Chart Analysis POT

Potash Corp./Saskatchewan (USA) (Public, NYSE:POT)

POT has been a market leader for well over a year now. It has been immune to the weakness in the markets and has been bought on every dip. However, notice how it has basically been trading sideways on very high volume. This is how the big boys distribute stocks to the little guys. It is tough to pick up sometimes on the daily charts, but sometimes it pays to step back and look at weekly or even monthly charts. (High volume) + (no movement higher) = Distribution and therefore a possible top. Looking at the chart below, it has paid to buy POT on pullbacks to the rising 21 week ema so it is possible that POT is a buy right here. However, it sure looks like POT is headed at least to the rising trendline and possibly much lower.

Good Trading,


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