Are Potash Stocks Back In Vogue? Potash Corp Still A Darling?

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The more interesting chart, though, is the very long term chart. It puts the previous one in perspective. As seen below, there is a larger pattern in play. Now THAT is imperative to know for decision making, and it is the reason why investors always (!) have to analyze the longer time frames before engaging in any position.

The falling trend channel is what attracts our attention. At the same time, we see a triangle pattern (formed by the two full purple lines). Both patterns show that 300 points are the breakout point. Interestingly, there was a significant breakout above 300 points recently, and the breakout point is tested right now. If GKX continues to rise from here it is a confirmed breakout, finally, after a long bottom formation. For sure, “nobody” is paying attention right now.

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Potash Corp: A leveraged way to play rising agricultural commodities

When we wrote 3 Agriculture and Potash Stocks On The Rise In 2017 it became clear that Potash Corporation of Saskatchewan (POT) is a darling among investors. “Both fundamentals and supply/demand look great” is what we wrote early this year.

Since then, nothing has changed, just that the price of this great stock has moved a bit up and down. After support held strong in April of this year, when we wrote Is Potash Corp A Buy In April 2017, has set a nice pattern of higher lows.

The fundamentals of Potash Corp are still great. On July 27th, the company will release its earnings, so it will be great to see how it did in the second quarter.

Our colleagues at Marketrealist.com may be right with this: “Cost savings from the lower cost of goods would likely boost PotashCorp’s gross margins. However, cost savings are expected to be offset by an increased operating cost. The EBITDA (earnings before interest, tax, depreciation, and amortization) is the pure measure of the operating cost.”

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