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Are Basic Materials Coming Into Resistance? $POT

|Includes:Potash Corporation of Saskatchewan Inc. (POT)

The past few weeks we saw a massive rally in the stock markets; also the basic materials did make a strong push. On the short term, this chart is overbought.

I want to go over the daily $POT chart we are short term overbought on the daily chart. The resistance will be between $44.00 and $44.80.

I will look to get a small short position on a pierce of the $44 level, the stop-out on this trade will be any close above the $47.00.

On a pullback look for the $42.15 as first support.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in POT over the next 72 hours.

Stocks: POT