Mosaic (MOS) a global leader in the crop nutrient industry, aka fertilizers. Their website says they are the only company with the ability to produce and deliver two vital crop nutrients, phosphate and potash, on a massive scale.
I remember reading a book maybe 10 or 12 years ago called "The End of Food" by Paul Roberts. Roberts forecasted the risk of a perfect storm of rising population and incomes, shrinking farmland and a slowing growth in yields despite the increased use of fertilizers. It seems like this scenario is now unfolding before our eyes and that probably means higher share prices for a company like Mosaic.
In this daily bar chart of MOS, below, we can see that prices have been working higher the past year. MOS is now trading above the rising 50-day moving average line as well as the bullish 200-day line. Notice how MOS bounced off the 200-day line in July/August/September and again in December. The more times a moving average or a trendline is tested the more significant it becomes.
The On-Balance-Volume (OBV) has moved sideways the past year but in general has moved up and down with the price action. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly Japanese candlestick chart of MOS, below, we see a bullish picture. Prices are in a longer-term uptrend above the rising 40-week moving average line. The weekly OBV line has been in a strong rise since late 2020 and is much stronger looking than the daily OBV line. The MACD oscillator is bullish.
In this daily Point and Figure chart of MOS, below, we can see a potential upside price target in the $69 area.
Bottom line strategy: MOS is close to making a new high for the move up and traders should be buyers here. Risk to $35 and look for $69 on the upside.
