Over the past week I have been watching for the commodity bounce to reach resistance and begin to fade. We are nearing that point in many commodity stocks. I will likely stay away from energy, as I do see more room to the upside for oil. This could boost energy stocks.
Steel, agriculture, copper, gold and silver related stocks all are close to good short entry points.
MOS is a good example of stocks in the ag industry that look ready for another run down. The topping formation is complete and we are now looking at the continuation setup. Price has pulled back to the what was once support for the topping formation. It is now resistance and provides a good entry point.
My intial target would be the recent lows. This is where I would take partial profits, move my stop up, and hold on for even more potential gain. There are two logical stop points. Either just above the 200 day MA or the resistance line.
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