Don't Ignore This Chart!

This Ag Stock Appears To Be Bottoming


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 Bowley
About the author: is the Chief Market Strategist at, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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