Mosaic Co (NYSE: MOS)

The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients worldwide. The company operates through three segments: Phosphates, Potash, and International Distribution.

Take a look at the 1-year chart of Mosaic (NYSE: MOS) below with the added notations:

1-year chart of Mosaic (NYSE: MOS)

MOS had been trading in a sideways for the past month and a half. During that time, the stock created a clear level of resistance at $22 (green), which has also been a prior support. The stock popped above that mark yesterday and should now find support at $22 again.

The Tale of the Tape: MOS has a key level at $22. A trader could enter a long position on a pullback down to that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a break back below $22.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT