The Canadian Technician

Agrium Kisses A Neckline. Summer Love or Summer Storm?

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The $TSX is giving us some very interesting charts to view. AGU.TO  is resting on...I mean testing support. We can see a drawn out Head and Shoulders top for Agrium.

AGU.TO 20130613

The RSI needs to hold here. The 40 WMA has turned flat at best. The MACD is still spread bearish and moving lower. The full sto's just crossed down as denoted by the red circle.

Here is a cycle view.

 


AGU.TO 20130613 10 Yr View
I opened the chart up to a very large size. dragged the cycle tool out to 52 weeks as you can see during June 2004 in gray at the bottom of the chart. So Agrium has found support this time of year before. The cycle has been pretty good. The stock is up against the long term uptrend line. 

When we look at the PnF chart we see it is considerably weaker than we would like.

AGU.TO PnF chart
The PnF says support at $89 has to hold. It has a very simple bearish price target of $81.00 THis is one to watch. There is horizontal support at $87 so all this is important here. We will see very soon if seasonality kicks in, or if the investment community needs to buy it lower.

Good Trading,

Greg Schnell, CMT

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA). Learn More
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