Fertilizer Stocks Smell Like Sh…..

…it is Spring in the Northern States as garden stores everywhere are stocked to the gills with vegetables, herbs and flowers. With the growing season here it is a good time to look at the fertilizer stocks. They should be looking great right? Well actually the charts look like, well eh, fertilizer. Among the names most followed Monsanto (ticker: $MON), Mosiac (ticker: $MOS) and Potash Corporation of Saskatatchawan (ticker: $POT) all stink. Take Monsanto as an example.

The downtrend that began in February has continued lower lately and is about to reach a support zone near 64. As it is falling the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicator continue to flash bearish. And with the shorter 20 day and 50 day Simple Moving Averages (SMA) crossing the 100 day SMA lower it looks like new lows to come. Look for support possibly at 63.35, the 200 day SMA, or 61 below that.

But maybe it is just the big guys, what about some lesser followed names like Agrium (ticker: AGU), CF Industries Holdings (ticker: CF) or Intrepid Potash (ticker: IPI)? Well, they smell like manure as well. Look at the chart of Agrium below.

Agrium has been in a downtrend since February as well but broke through support at 86.50 last week. Now under the 200 day SMA it has its eyes on 81 and then 78 as the next possible support levels. This group is showing signs that it might clean up its act soon though as the RSI is getting oversold and it is breaking below the Bollinger bands. Keep an eye on them for a turn.

So where can you look to find some good news in this space? How about that local garden shop. Scotts Miracle-Gro (ticker: SMG) has been smelling like a rose.

Scotts Miracle-Gro has almost a mirror image chart to the others, rising since the beginning of the year and printing a ‘W’ pattern over the last 5 weeks. This can continue higher or pullback into a ‘V’ completing a “W-V’ pattern before moving up. It’s recent move higher took it out of the Bollinger bands though and it pulled back Wednesday. If the pullback continues look for support at the 57.48 – 58 area and a reversal. If it continues higher Thursday jump on board and ride it higher to Measured Move target at 70.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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