Mosaic is making a run for the bottom a very long term channel bottom (3YR Weekly Chart at the bottom). This presents several options for those that are more focused as traders.
15 MIN – 20 Day Chart on MOS – NASTY
As I started watching this play out over the last couple of days, the 15 minute chart was a pretty good guide for me. The breakdown over the last hour has been significant.
Where one sees blood, other see a purchasing opportunity, and it is always a good idea to look for the trade that would be on the opposite side of yours. Obviously one that has a bias toward going long can attempt to go long near the $71.55 area, setting a stop just below that around $69.00 at most. This provides an opportunity to catch a bounce with little risk. Personally, with all commodities looking pretty weak and entering into May (historically one of the crummiest months for stocks), I am not in this camp at all.
The good trade has been to be short MOS, and I have enjoyed that position for several days. As we near this significant area of support, I am on high alert because I do not want to give up my gains. As I examine this trade I have now entered in stops at $73.50 to prevent me from giving up a large portion of these great profits. On the flipside, if the $71.55 area breaks down I am looking for a potential move to $65.00
Long term 3 Yr Weekly Channel is Close to Breaking. –
Daily View – 200 Day
As always, be careful. I'm not sure if MOS has suffered weakness as it has become known that Bin Laden is dead, therefore resulting in one less major buyer on the world market for fertilizer.