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POT: Breaking Out From a Big Triangle

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

POT recently formed a big triangle (it's more apparent on a weekly chart). I see this as a beautiful triangle formation because of the 5 legs inside the pattern, with clear strong buying support at $50. Notice how choppy prices have been moving while inside the triangle. That tells me it is consolidating and resting for a big move up.

The recent price action bursted outside of the triangle and prices are looking to move higher. With a big triangle breakout like this, POT can easily reach the apex of that pattern, around $63, if not more.

I like POT here, any dip or pullback would be a good new entry or adding to existing positions.



Jun
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Disclosure: I am long POT.