FMC Stock Is Lining Up to Make a Recovery Rally

We have not reviewed the charts and indicators of FMC Corp. (FMC) since September, where we wrote, "prices are still pointed up but with bearish divergences from our momentum indicator. I want to "be prepared," not in the Boy Scout sense, but in the sell-stop sense. I would recommend raising sell-stops to a close below $81..." Prices struggled to post new highs in January and then corrected lower into late March. It looks like we can have a decent recovery rally in the weeks ahead. Let's review some updated charts now.

In this daily bar chart of FMC, below, we can see that the retracement of the past three months started with a gap to the downside with heavy turnover or volume as prices broke below the flat 50-day moving average line. Prices rebounded later in January and then failed at the underside of the 50-day average line. The weakness continued and the 200-day moving average was broken and bounces to the underside of that indicator also failed....290 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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