Fertilizer maker CF Industries Holdings (CF) is scheduled to report their latest quarterly figures to shareholders and analysts after the close of trading Monday. Let's visit with the charts and indicators.
In this daily bar chart of CF, below, we can see that prices have been correcting lower from April and made a successful test of the rising 200-day moving average line in July. Prices have been rallying and now trade above the 50-day moving average line.
The On-Balance-Volume (OBV) line only weakened in May and June and has been steady since late June. The Moving Average Convergence Divergence (MACD) oscillator has improved from late June and is now crossing the zero line for a new outright buy signal.
In this weekly Japanese candlestick chart of CF, below, we can see a number of lower shadows as CF tested the rising 40-week moving average line.
The weekly OBV line was in a strong rise and dipped temporarily in May and June. Now the OBV line looks like it has resumed its rise telling us that buyers of CF are once again being more aggressive than sellers.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but pointed down. The oscillator has begun to narrow and that can foreshadow a new buy signal in the weeks ahead.
In this daily Point and Figure chart of CF, below, we can see a potential upside price target in the $123 area.
In this weekly Point and Figure chart of CF, below, we can see that the software is projecting the $129 area as a potential longer-term price objective.
Bottom line strategy: In our February 2 review of CF we recommended the stock. 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.
