5 Reasons to Sell POT Today!
I just read a well-timed article on Profitable Trading. Unfortunately I read it a day too late. POT did break out today. If you bought it yesterday you could have sold it today and walked away with a nice profit.
1) However, that spike upward just brings POT back to the normal downward trend that it has been on since March 2011, making a correction from the price drop on 7/30/13.
2) A look at the past year shows that the stock is still generally in a downward trend. If you are a swing trader, you can’t necessarily expect it to keep going up.
3) A look at the past three months shows that today is indeed a breakout from recent resistance levels around $33. POT has been rather choppy lately.
4) The RSI is the highest that it has been since May 2013!
5) The MACD and the signal line are running neck and neck. Momentum is weak.
All of these things tend to indicate that the next move this stock will make will be down, or at least that there is no strong reason to believe that it will go up from here. If you are a professional trader you know how to make money whether a stock is going up, down, or sideways, but if you are a beginner who read that article on Profitable Trading and bought POT yesterday or the day before to make a swing trade, you may wish to sell it quickly.
Disclaimer: I am not a registered investment adviser and I do not provide specific investment advice. I do not own any position in Potash Corp (POT) at this time, nor do I intend to initiate any such position within the next 30 days. The information contained herein is for educational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research. Investing involves risk, including loss of principal.
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