POT – Potash – Symmetrical triangle break down
Just wanted to get a quick post up before I head out and take care of some errands. Late in the day I had a nice short side trade on Potash, which broke down out of a very cleanly formed symmetrical triangle.
I liked how the base of the triangle was just below the R2 pivot point. I entered short on a break down of the 182.50 level. I placed my stop just above 183.25.
My target on the trade was just below yesterday’s high.
If you take the height of the symmetrical triangle (~2.35) and subtract it from the break down point (182.50), you get a target of about 180.15. POT came close to that point (it’s low was 180.33). I was aware that yesterday’s high was at 180.19 and the R1 pivot point level (180.59) could potentially act support and indeed it did.
I closed out the trade for a little over 2R as price started to bounce off the R1 level.
Later I’ll post my trade of FSLR and JASO.
Hi MD~
I like you site and you analysis. I have added you to the Blogs I Read section of my blog.
About the POT trade today, I liked the way you played the triangle BO. My R1 level, however, is at 179.96. Maybe is just my chart.
Cheers,
anarco
Anarco,
Thanks!
I went to http://www.pivotpointcalculator.com/Default.aspx to double check my pivot levels and they are close to being accurate. Based on yesterday’s data, R1 was calculated out to be 180.61 vs the 180.59 I had.
I’m not sure when this site post was originated, but I’m looking at buying 1000 shares of POT @ $60.58. As for your charts, I’m sure no one could have predicted this much of a price slide, but you have to admit, after their last stock split, this stock went way up way too fast, and that’s something anyone could have saw??