$MON still setting up for a short….

Here is the original chart posted: https://fctrades.wordpress.com/2013/07/03/monsanto-mon/
Over the past few weeks, MON has bounced off of the bottom trend line but failed to take out 106.8 so this trade remains valid.

Here is the updated chart:

(click chart to enlarge)

(click chart to enlarge)

 

As we can see on the updated weekly chart, the 5 sma crossed below the 8 and the 8 is about to cross below the 13. It remains in a megaphone chart pattern, which is a bearish sign. MACD remains bearish.  We are still watching for a break below 97/96.5 to enter a short position, and once again a rally above 106.8 will dismiss this trade.

Here is a link to a Wall Street Journal article released today (http://blogs.wsj.com/moneybeat/2013/07/30/potash-price-concerns-hammer-fertilizer-stocks/?mod=yahoo_hs). In summary, fertilizer companies, mainly those in the Potash business are getting hit hard after Russian fertilizer co. Uralkali suggested potash prices could fall sharply. Uralkali said the move would likely result in potash prices plummeting to about $300 per ton by the end of the year.

Potash Corp ($POT) cut its outlook for the rest of the year after weaker second-quarter results, and said it was hurt by competition and falling potash prices, which were down 22% to $356 per ton.

(Source: John Shipman, The Wall Street Journal)

Currently Monsanto 100.37 (-1.19, -1.18%), Potash Corp 30.88 (-7.02, -18.5%), Mosaic Co 43.37 (-9.57, -18.16%).

 

Disclosure: No position

 

 

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