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.

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