Trading Idea - Potash Broke Resistance, What to Expect?

Published on Friday, 30 July 2010 06:08 Written by Christian Paolinetti

New York, July 30th (TradersHuddle.com) - Shares of Potash Corporation of Saskatchewan Inc. (NYSE:POT) closed the trading session at $102.80 just above calculated resistance at $99.64 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

Potash Corporation of Saskatchewan Inc. (NYSE:POT) produces potash, phosphate, and nitrogen for the agricultural and industrial industries worldwide. The Company operates in Canada, Chile, the United States, Brazil, and Trinidad.

Potash's stock was trading in a well defined range with support at $83.85 and resistance at $99.64, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Potash's stock is still near the broken resistance level, traders will be focusing on $99.64 to see if the stock holds the breakout without rolling over.