Agrium(AGU) is Temporary Oversold

Today market was panic because of negative news from the housing report and Ford Earning Release. Ford Earning Release is very important for investors as one of indicator whether US Economy is already in recession or not. Because it reflects current US industrial performance. When investors panic, they will dump everything assets they hold to save their money. As consequently, shares that have a good fundamental such as Agrium will also be sold off, it's like what occurred to many shares today, including Agrium.

Let's look at the chart below, Agu is currently oversold and I expect it will rebound in one or two days ahead. Beside Agu is currently supported by long upward trend as figured by the green line, Agu is also in a descending channel as figured by the double brown lines. I expected Agu will touch around $90 and further the rest depends on current market sentiment. It seems market will continue going lower as analysts said and Agu will follow the descending channel trend after rebound to around $90-$95.

If you are a long trader, maybe it's too late to buy Agu at this time. As Dennis Gartman said, "In Bull Markets One Can Only Be Long or Neutral, and in bear markets, one can only be short or neutral" (Dennis Gartman's Not-so-simple Rules of Trading).


While Agu's short Interest Ratio value was increasing sharply. It can be a measure of investors pessimism.

Source: Schaeffer's Investment Research, Inc.

Related Posts :

1. The Rest of the World is Weakening Rapidly
2. Buy Agrium (AGU) on The Dip

Please Note!

This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

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