CF Industries ( CF) is manufacturer and distributor of agricultural fertilizers, including ammonia, urea, and ammonium nitrate products. The stock was raised to an overweight fundamental rating by a sell side firm Wednesday.
In our August 1 review of CF we wrote that "Traders may well still be long as our suggested sell stop was not touched. I like the price action ahead of earnings so I recommend that traders stay with the long side of CF. The $123-$129 area is our price target now."
Let's check and see how things look now.
In this updated daily bar chart of CF, below, we can see that prices continue to climb upwards from their July test of the rising 200-day moving average line. The 50-day moving average line is bottoming and turning upwards. The On-Balance-Volume (OBV) line is steady. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In this weekly Japanese candlestick chart of CF, below, we can see the lower shadows in early July as the stock tested and held the rising 40-week moving average line. The white real bodies are bullish and tell us that prices closed higher than where they opened for the week. The MACD oscillator is poised to cross to the upside for a fresh outright buy signal.
In this daily Point and Figure chart of CF, below, we can see an upside price target in the $121 area.
In this second Point and Figure chart of CF, below, we used weekly price data. Here the chart suggests a longer-term price target in the $146 area.
Bottom line strategy: Continue to trade CF from the long side. Hold earlier recommendations. The $121 area is our first price target with $146 possible longer-term.
