POT formed support on its rising trend line. POT gapped down on July 30th, 2013 on fears of oligoploy pricing discipline for Potash. The share price of POT fell from 37 to 28 level when Russia’s Uralkali quit a cartel agreement with the Belaruskali Potash Company.
POT and other agriculture stocks are trying to rebound on news that Russian authorities are putting the pressure on Uralkali to come back to the negotiating table. POT is gradually trying to move back up. On October 11th, it formed hammer candle on its rising trend line and then next day bullish engulfing candle. Today on October 15th it moved up further on a down market. I expect POT to maintain its support and its trend line and rise towards 35-37 area.
Recently an article was published on Seeking Alpha giving us 7 Billion Reasons to buy POT.
A trader can buy December 32 Calls with the target of $35-36. Today POT closed at $31.86. Up 35 cents.