Recently, the team at InvestingHaven identified 3 agriculture and potash stocks which were on the rise. Potash Corporation of Saskatchewan (NYSE:POT) was certainly one of the most interesting potash stocks.
We wrote that Potash Corporation of Saskatchewan (POT) is a darling among investors because both fundamentals and supply/demand look great.
As a reminder, some specifics about Potash Corporation of Saskatchewan Inc.: it has a market cap of $15B and a P/E ratio of 33, it has a short float ratio of only 2%, a cash position of $150M, and an EPS of 0.10 in the last quarter.
What happened since then in the potash sector, and, in particular, in Potash Corp?
Interestingly, we wrote our article exactly at a time when the stock broke out. However, it was a false breakout. Is that a reason to become bearish? Not necessarily, it depends in fact. To be more precise, it depends on the retracement.
Right now, the retracement is reaching a bullish support line. If the $22 in POT.TO (Toronto stock exchange) holds firm, it would be a very bullish sign. The retracement would be a healthy pullback, and the market will go for a second attempt to break out.
However, if $22 does not hold, it would be very bearish.
So is Potash Corp a buy in April 2017? Potentially yes, if $22 holds, there would be no breakdown.
The breakout level in this stock is $26.
