Buy Fertilizer -- But Not the One You're Thinking Of...

When you thin of trading fertilizer companies you immediately think of CF Industries, $CF, or Potash Corporation of Saskatchewan, $POT. These have been popular with traders but if you look at their charts now you see a potential pullback in $CF and $POT in a broad consolidation for a very long time. But there is an opportunity in this space if you look outside of the mainstream. Agrium, $AGU, is trading at 4 year highs and looks good for more. Take a look.

Agrium, $AGU

The chart for Agrium, $AGU has a lot going for it. First note that the 20 day Simple Moving Average (SMA) has been an easy indicator to use to see if the tend is higher or lower. Above the 20 day SMA and it is going higher, below it and it falls. Currently it is above it. Next teh move higher that climaxed in May pulled back to the 38.2% Fibonacci Speed Line and has bee strongly moving higher since, mainly around the 76.4% Line. The steepness shows good strength. Finally the current consolidation at 106 after this run up carries a Measured Move higher to 136 on a break higher. Look for a break over 106 to add it to your portfolio.

*Post courtesy of Greg Harmon at Dragonfly Capital.

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