12/18/2011 8:55:00 PM
Keystone Speculator
Posts: 32
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POT Potash Weekly Chart Falling Wedge Oversold Positive Divergence H&S Gaps:
POT is ready for a bounce. The daily chart is in postitive divergence now so price wants to pop. This weekly chart shows the green falling wedge, overbot conditions and positively diverged RSI, MACD histogram and stochastics that reinforce the daily chart and give a bounce in price some strong street cred. Note the pesky MACD line and money flow, however, the skunks at the garden party, they want to see another rmatching or lower low in price after price bounces. At that point in time all the indicators should be positively diverged to allow a more sustainable sideways move well into 2012.
Note the pink H&S pattern with a head at 62, neck at 50 which targets 38, or, a head at 63, neck at 50 which targets 37. The 37-38 level is sturdy horizontal support as well. Projection is for price to bounce upwards now (possibly to test the 200 MA at 43.50 from underneath) but then price will leak lower again to satisfy the H&S targets at 37-38 and then move sideways to sideways up as 2012 gets underway. As POT moves along in the new year, however, the gaps below will prove to be a magnet as well as the sideways ranges of 28-42 and 28-38 for much of 2012. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.
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