User: TnRevolution: My Charts:

MOS Daily Chart 

Let's take a look at how to use reversal levels on different timeframes to time entries into new positions. Mosaic was a company that had been on watchlist, and turned into a nice buy this week as it broke above its longterm downtrend line. The stock went from 46 to almost 49 this week on nice volume as it broke the downtrend line. 

If you are not currently long the stock, wait for a pullback. MOS almost had a ST sell reversal on Friday. If it continues lower on Monday, we'll see the ST sell reversal. As long as it stays above the IT reversal level, when the stock gets the next ST buy reversal will be a great spot to either enter 3-4 month near the money call option (IT position), or a straight long position in the equity for a long term investment position. For instance, if the stock falls to around 47 on Mon/Tues, and then gets back above 48 by the end of the week, there's your entry.


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POT looks a little stronger, on the TSX it has taken out the high of the July 2013 downdraft. In NY it is still trading below that level 40.07 1/24/15