Mosaic reports earnings Monday and expectations are very low, news flow has been extremely Bearish with multiple downgrades and production issues. Demand is also in decline due to issues in China, but these issues could turn very quickly. The price action is so bearish there may a contrarian long possible due to expectations been so low, any surprise in earnings...
$MOS has broken out of an ascending triangle and held above the past resistance line on strong closing volume from 22.04.2019. Look for a possible run to the resistance line at $28. This is a quick trade for around 3% gain.
There is a support level around 54$ which was already tested beginning of April.
Stop should be arround 52$.
Next support is somewhere near 50$ which make the sell of a PUT very attractive.
From indicator perspective only my RVGI is bullish by crossing the 0 line.
This is not financial advice.
I expect MO to Fibonacci retrace to the golden pocket area (.618 - .65) and bounce off where we had previous resistance (a weekly and monthly level of significance).
Placing buy laddered buy orders from 48.91 to 47.82 is my idea. There is a chance price dips below the .65 into the liquidation zones a bit below. Set your stop loss...
A lot happening with this name.
- Doji confirmation following the hanging man 6 days prior.
- Steep wedge pattern
- Extremely low VIX momentum
- RSI over-extended
- Negative divergences on lower time-frames
- Currently sitting at potential profit taking resistance of Inv. H&S
- Wedge is still intact
- Above 20, 50 and 200 MA on daily
Trading stock is not easy and n this case you will have to try to catch the 61.8% retrace break. A daily close next week above 57.10 will open the upside test of 62 level. Look for this daily break to enter the trade.
- BBands look tight (low BBW) -> I expect volatility
- the middle band is holding nice so far
- that looks like an ascending triangle
- there is plenty of room for RSI to increase
All together I drew some meme target boxes and we'll see.
Idea came from @kkernttb