Are the Bears Taking Control over Intrepid Potash?

Published on Tuesday, 12 June 2012 04:24 Written by TradersHuddle Wire

New York, June 12th (TradersHuddle.com) - Shares of Intrepid Potash, Inc. (NYSE:IPI) ended the trading session higher by $0.04 or 0.2% from its previous close. Intrepid Potash's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Intrepid Potash, Inc. (NYSE:IPI) mines and markets potash for use as a fertilizer. It also offers by-products, including salt, magnesium chloride, and metal recovery salts. Intrepid serves agricultural, industrial, and feed markets. The company is based in Denver, Colorado.

Intrepid Potash's current stock range is determined by calculated support defined at $18.42 and by the resistance level at $20.84, which should be used by traders planning their next move.

If traders want to establish a position in Intrepid Potash, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor Intrepid Potash for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: