A look at a daily chart of Potash Corp (TSX:POT) reveals that a Gartley 2-2-2 Pattern is unfolding, or perhaps is nearly completed its unfolding.
As the embedded image here in shows, point X began the pattern back in April. Points B and C were registered in May. Point D aligns to the distance X-A in accordance to a ratio of phi. The result is the classic ‘M’ pattern. There is every chance that price could still drop a bit further in this pattern, but it dare not take out the lows that define point X.
I say there is every chance of this, because DMI is negative, RSI is oversold (and could stay that way for a bit..), and the CCI indicator is also oversold (and could remain so…). I will be watching this stock closely. Either price will drop towards point X, or price will get above the key moving averages which will improve the DMI, RSI, CCI. I will make my move accordingly as one of these events occur.