Ag Stocks Higher, But Stall At Double Tops

Agriculture stocks are having a solid day. While the market is slightly lower, stocks like The Mosaic Company (NYSE:MOS) and Intrepid Potash, Inc. (NYSE:IPI) are higher. While these two stocks are higher, both ran into major double top resistance points and have stalled out. Less than a month ago, MOS hit a 52 week high of $85.99. After hitting that high, the stock collapsed in a bloodbath, dropping to a low two days later of $71.87. After inching higher almost every day since then, the stock reached the double top today, crossing it briefly. Since crossing it, MOS has pulled back. Note the chart below.

The same applies to Intrepid Potash. IPI topped out on January 18th, 2011 at $39.63. Within two days, it collapsed to a low of $33.90.  This level also coincided with the 50 moving average on the daily chart. After hitting this level, the stock rallied all the way back up to the double top high. After briefly crossing it today, it has pulled back.

This double top level should continue to be solid resistance in the short term on both stocks.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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