This Fertilizer Stock Continues To Chop In A Wide Range
Share
Sociedad Quimica y Minera de Chile SA engages in the production and distribution of fertilizers, potassium nitrate, iodine, and lithium chemicals. It operates through the following segments: Specialty Plant Nutrients, Iodine and Derivatives, Lithium and Derivatives, Industrial Chemicals, Potassium, and Other Products and Services.
Take a look at the 1-year chart of Sociedad (SQM) below with the added notations:
Chart of SQM provided by TradingView
SQM has rallied up into a clear trading range between an $80 support area (green) and a $116 resistance (red). At some point, the stock will break out of the range, and that break will likely dictate the stock’s next big move.
The Tale of the Tape: SQM is trading in a sideways range. Long trades could be entered on a pullback to support, or on a break of resistance, with a protective stop set underneath the point of entry. An ideal short trade could be made on a break below support.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Good luck!
Christian Tharp, CMT
ATTENTION SUBSCRIBERS!
Do not trade options until you watch my urgent message:
How to Use This Simple, Yet Extremely Powerful System to Find Substantial Gains With Options…