Alert: Ag Stocks Higher, But Stall At Double Tops
Agriculture stocks are having a solid day. While the market is slightly lower, stocks like The Mosaic Company (NYSE:MOS) and Intrepid Potash, Inc. (NYSE:IPI) are higher. While these two stocks are higher, both ran into major double top resistance points and have stalled out. Less than a month ago, MOS hit a 52 week high of $85.99. After hitting that high, the stock collapsed in a bloodbath, dropping to a low two days later of $71.87. After inching higher almost every day since then, the stock reached the double top today, crossing it briefly. Since crossing it, MOS has pulled back. Note the chart below.
The same applies to Intrepid Potash. IPI topped out on January 18th, 2011 at $39.63. Within two days, it collapsed to a low of $33.90. This level also coincided with the 50 moving average on the daily chart. After hitting this level, the stock rallied all the way back up to the double top high. After briefly crossing it today, it has pulled back.
This double top level should continue to be solid resistance in the short term on both stocks.