March 23, 2022, 12:09 pm EDT
2022 Actual Trade: MOS +56% Profits
This is a textbook example of trade using the classic cup-with-handle pattern. Combining with technical setup, economy cycle (inflation), and triggering event (Russia-Ukraine war) made fertilizer giant Mosaic Company (MOS) a profitable trade for 2022.
MOS was our stock picks published on 02/15/2022 Strong Fertilzers Mosaic Company (MOS)
10 days later, MOS began its explosive rally on 02/24/2022 when the Russia-Ukraine war started.
- 3-month base with round shape cup pattern (10/18/21 – 01/18/22)
- 2-week handle (01/18/22-02/01/22)
- key resistance level 43-44
- triggering day 02/01 with about 10% move (from 40 to44)
- Mild rise and re-test 44 on 02/24
- 02/24 was the day that began the Russia-Ukraine war
- Inflation and wars both squeezed fertilizer to the sky for the next 5 weeks
- +56% profits in 7 weeks
Food shortage and strong demand for agriculture are still there for the coming months. Thus, we will keep monitoring the fertilizers group (MOS, CF, NTR, IPI) for another entry point.