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Potash Corp. (NYSE: POT) filled the gap up from 2 days ago, so I have decided to go long again. But this time, it is only a half position, since the market is vulnerable to further downside.
The green zone highlights what I think should be intraday support. The strength of this support zone will likely depend on the overall market, meaning that this is not a defined support/resistance level ( defined support/resistance levels are only truly known in retrospect). In a way, I am betting on a market bounce from here, even if it is a dead cat bounce.
Long POT @143.1, initial stop=142.5, target=150 (and this time I will not be so greedy).
Friday, December 28, 2007
Swing Trade: Potash Corp (NYSE: POT)
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2 comments:
what do you think it will happen to POT before they post their earnings on Jan 24th. I am long on at 147. Do you think will be worth to wait? How high do you think it will go.
Carlos
Hi Carlos,
Between now and the 24th, my ideal scenario would be a run-up in anticipation of good earnings. That was one of the reasons that I bought. The other reason that I bought was in anticipation of any possible buying enthusiasm to kick off the first week of 2008. How high do I think it will go? Don't know, but I do know that it has made a new All time High in each of the past six months.
Of course, POT does look a little overbought and overextended right now, so I am more than willing to sell at the first sign of trouble. In other words, if the pre-earnings run-up does not materialize, or there is no buying enthusiasm in the first week of 2008, or my stop@142.50 is hit, then I am out.
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