It's been downhill for a long time for CF Industries (CF), but finally its downtrend was broken and volume has been pouring into the stock at these lower prices. CF's short-term strength has taken it to a 50 week SMA test for the first time since August 2015. What it does from here will likely determine it's future direction. Let's take a look at the chart:
CF's SCTR has surged 35 points today, which ranks as the largest up move among all large cap stocks. Note that this is the first time in a year that CF has boasted a SCTR ranking over 20 as well. During this process, CF has broken its downtrend line and is currently trying to print a weekly close above its 50 week SMA - all on very solid volume.
The key for me is how CF reacts technically to its next pullback. The rising 20 week EMA should now hold as support and that's currently at 25.36. Stay tuned and....
Happy trading!
Tom
