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My previous commentary on POT noted maximum selling pressure may of been reached at the 98.27 low. If this was the case, POT was expected to rally and reach $130.26 by March 26, 2010. For the previous commentary visit http://1618analytics.blogspot.com/2010/02/saskatchewan-potash-and-mercury.html
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On March 16, price hit a high of 128.42 and has since pulled back to $121.16 (5.65%). The price of 130.26 still remains an active target as there are 5 trading days until March 26 occurs. From the previous forecast, I determined that price should expand by 270 degrees (130.26) but it appears as though price has met significant resistance at 240 degrees (126.39). Price has currently retraced 38.2% of the previous rally as calculated from the $105.60 swing low. The 38.2% retracement support is located at $119.70
Given the volatility of this stock, I would look for Potash to remain above $119.70 (38.2%) OR $117.01 (50%) if the $130.26 target is to be reached by March 26, 2010. Any significant break below $117 would put the $130.26 target in jeopardy; a re-assessment would indicate that the $128.42 high marked the end to this upward correction. For the upward trend to be completely compromised, I am looking for a confirmation break below $114.50. Given a break below $114.50 early price targets include $58-$60 a share.
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