POT is smoking!

I recently featured a look at Potash Corporation (POT) in which I suggested that the stock was extremely undervalued and worth purchasing. 

At that time, the stock price was around $120.00.  Today the stock closed at over $140.00.

Yes, hindsight is 20/20 but we must learn from the past or we are bound to repeat it!

What can we learn?

Because it is such a short time period, we must look to learn more from technical analysis than from the fundamentals. 

  • Study the price and volume action at that time.  What do you see?
  • Study the price and volume today.  What do you see?
  • What are the differences and what are the similarities?
  • The support level then was at $110.00.  Do we see evidence of a new support level while looking at today’s chart? 

All of these points are something to think about as we look at some elementary technical analysis indicators.

2 comments

  1. I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Susan Kishner

  2. Susan,
    Thanks for stopping by. I’m glad you liked what you read. Please feel free to contact me with any thoughts, questions or suggestions.
    Regards,
    Tyler

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