Tuesday 6 January 2009

Potash Corp of Saskatchewan (ticker:POT)


A renko chart based on daily prices of one of the highflyers early 2008. The bottom is in - as it seems -. For the moment. A buy momentum is created as the herd is forced back to stocks.
The first vertical line shows the set-up of a classical sell occasion: the CCI went below +100, soon followed by a flipping SAR.
The second vertical line looked like a buy opportunity. The CCI went up above -100, followed by the swich of the SAR. But the SAR flipped back above the price action and that was an indication to get out of this long position.
The third vertical line - with a false signal in between - was only formed recently. The CCI indicated that the possibility to install a long position was coming up and the SAR-switch confirmed the positive tone.
Normally we like to look to renko-charts based on a 1-hour interval, because we think they are more appropriate for the current markets.
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