Natural Gas Gives CF Industries a Headache

I would expect CF Industries (CF) to perform better with natural gas struggling; however, as natty gas finds a floor, CF is finding a ceiling. In fact, it's banged its head on the ceiling and is struggling to regain its footing. If anything, it feels as if natural gas wants to move higher, which could create issues for CF bulls. 

I'm using the opportunity here to move into a diagonal put position on CF. This is a tight diagonal put spread in terms of time, but I'm looking for the 20-week simple moving average to fail. We also have bearish crossovers on both the Chaikan Oscillator and the Full Stochastics. This has been troubling for bulls in the past. Support should come into play at $29 first, but I think we could see as low as $26 here. ...121 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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