The Start of a Mosaic Tug-of-War
When a daily chart pattern is bullish, and the weekly chart of that same stock is bearish, there will come a time when it will approach a crossroads. I saw this occur in Potash (POT) when a very bullish daily chart slammed into the low end of weekly resistance. Since then, the stock has started to correct nicely to the downside. I don't know if my downside targets in Potash will be met -- but, if I were in a short position, I would be trailing a stop and letting the market tell me when to get out.Potash (POT) -- Daily Source: Dynamic Trader View Chart » View in New Window »
I'm seeing this again now in Mosaic (MOS) -- the beginning of a very important tug of war. Let's start by looking at a daily chart that includes the larger prior rally swings, which identify current resistance. If you'll notice, thse swings have brought the stock higher anywhere between $13.30 and $18.30....470 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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