Chart of the Week: Intrepid Potash
Good morning everybody, good morning all. It’s time for our chart of the week. This week we’re gonna be focusing on smaller fertilizer name called Intrepid Potash; symbol is IPI. Let’s take a look at the chart and see what we can figure out here. The stock’s been in a nice roll up trend here and had a big pop on Monday, November 4. So let’s take a look at this thing.
As you can see, the stock kind of bottomed out after a big fall back in August. Fell, actually late July, from about the high $20s to about the low $20s.
In dollar terms, it wasn’t a huge movement; in percentage terms it was rather large. But it found a low, maybe made a base around the 200 day moving average, which is right over here. And it started making higher highs and higher lows, which is our textbook definition of an uptrend.
Back in October, you can see the candles moved from amber color to blue and teal – went teal here – but mostly blue, which means the stock, according to the go-no-go composite of indicators, is in an uptrend. And look at this big huge volume bar that hit on November 4. Very strong as the stock broke out of a recent resistance. Now we do have some resistance from that high back in July, let’s call it about $28. So it’s got a little bit more room to go.
But we think that the indicators show that the stock has got some room to get up to those levels and maybe even beyond. Look at the strong money flow over here. Stochastics have turned to bullish over here. We see the Chopman indicator is starting to move back up. And the MACD is still on a buy signal from where it was when it crossed over in the middle of October.
Some of the other fertilizer stocks, like Mosaic and NTR, were also up strong. But pulled back a little bit. But Intrepid Potash was the only one that really closed strong near the highs of the session.
What would we like to see here? We’d like to see a follow-through day today either Wednesday or Thursday. A follow through and maybe approach that high here around $28 and change and see what happens here.
Down the road, I think that Intrepid Potash got room to run to up to $35, maybe $40, maybe in early 2025, maybe middle 2025. It’s’ gonna take a little while; the stock doesn’t move a whole heck of a lot.
I think that that might be a really nice gain for the stock to make – 50%.
What of course helps fertilizer stocks is higher oil prices, too, and inventory levels of fertilizer. So we’ll see how things go here. But I do like Intrepid Potash over here.
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