CF Industries Holdings (CF) is in the business of manufacturing fertilizer. I wrote about the stock way, way back on October 17, 2017 and noted that "Aggressive traders could go long CF at current levels risking a close below $34 looking for gains to $42 and then $50." CF reached our price target a year later but now it has climbed above its 2015 zenith and a fresh look is needed.
In this daily bar chart of CF, below, we can see that prices have been in an uptrend the past year. CF is trading above both the rising 50-day and the rising 200-day moving averages. The daily On-Balance-Volume (OBV) line shows a bullish rise to confirm the price action. The Moving Average Convergence Divergence (MACD) oscillator is currently bullish.
In this weekly Japanese candlestick chart of CF, below, we see a bullish setup. Prices have tripled over the past two years and are still in a strong uptrend above the rising 40-week moving average line. Both the OBV line and MACD oscillator are bullish.
In this long-term bar chart of CF, below, we can see that prices have broken out over their 2015 highs.
In this daily Point and Figure chart of CF, below, we can see a potential upside price target of $88.
In this weekly Point and Figure chart of CF, below, we used a five box reversal filter and can see a $125 price target.
Bottom line strategy: Traders could read our review of another fertilizer company Mosaic ( MOS) before deciding on which company to go with. Meanwhile, traders interested in CF could go long at current levels risking to $63. $88 and maybe $125 are our price targets.
