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Wednesday, July 20, 2011

Mosaic on the Move


With some help from a Goldman Sachs research upgrade and conviction buy of Monsanto (MON) this morning, the chemical-fertilizer section, in general, and Mosaic (MOS), in particular, have attracted some sympathetic buying, as the stock claws its way back up towards a retest of Monday evening's earnings reaction high at 69.97.

I expect that to happen in the upcoming hours, but it is what happens thereafter that intrigues me. Let's notice that a three-month resistance line at 70.30 as well as the July high at 70.69 represent a formidable resistance band, which if hurdled and sustained should trigger upside continuation and acceleration towards 74.00-75.00.

At this juncture, only a decline that breaks yesterday's low at 67.55 will delay the initiation of a new upleg in MOS.


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