A number of agriculture plays have been under pressure in the past year. Some names came off their January or February lows, but these gains have been given back in recent weeks and now some stocks like Potash (POT) are poised to make new lows.
This daily chart, above, of POT shows the steady decline the past 12 months. Prices are below the 50-day and 200-day moving average lines. The slope of the 50-day line turned flat or neutral and the 200-day remains in a downtrend. The On-Balance-Volume (OBV) showed a temporary pickup in March and is now pointed down again. In the lower panel is the momentum study or indicator, and unfortunately we haven't spotted any bullish divergences with the price action.
This weekly chart, above, of POT is not encouraging. Prices are below the declining 40-week moving average line. The OBV line on this weekly time frame is pointed down and again there are no bullish divergences to get excited about. If prices break down under $15 and make new lows, then we could have bullish divergence if prices make new lows, but the momentum study does not. Regardless of what might happen in the short-run, the intermediate picture suggests it will take a long time for POT to develop a bottom.