Potash Corp (POT) has been behaving quite nicely for the past month. We identified a channel in July that has held up since then, and after retreating from the top of this channel after a third touch, it’s looking like it may get tested again.
On the chart you can see where the upper edge of this channel was tested three times in the past 6 weeks, each time with a slight pullback and a retry. The last time it pulled back a little farther, then settled in with the 50-day moving average serving as a support line. The previous test served as the TENTH (one-oh) test of this resistance line - that’s a formidable amount of resistance.
Right now there’s no trade that makes sense that we see, but if POT creeps a little higher we could see a bear call spread jump into the mix. Right now it’s just an interesting pattern that seems to be getting stronger and stronger.