Don't Ignore This Chart!

This Ag Stock Appears To Be Bottoming

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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

Tom Bowley
About the author: is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market. Learn More
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