Monday, February 25, 2008

Swing Trade : Agrium Inc. (NYSE:AGU)


Read Full Post.....
I've previously talked about the Agricultural Chemical stocks as one of the sectors in a sweet sector-wide uptrend. I've previously traded Potash Corp (NYSE:POT) as a way to take advantage of the sector trend. Well, POT broke out to new ATH's recently, and I was left on the outside looking in. Not wanting to miss the bandwagon, I took a long position this morning in Agrium Inc. (NYSE:AGU).

There were four reasons that I went long:
1. great looking daily chart of a stock in a sector uptrend
2. AGU gapped up and saw follow through buying on Friday.
3. Today's opening drop only partially retraced Friday's follow through buying.
4. Tape looked bullish near the end of today's morning pullback.

Initial stop is at 68.9, I anticipate new ATH's
This was an instance where buying the morning pullback was the right play to make.

UPDATE: moving my stop up to breakeven @71.5

No comments: