Wednesday, March 19, 2008

Terra Nitrogen Breaks Down

We had talked earlier about TNH and how it was starting to look very weak.

The decline today put it into a breakdown phase on the weekly chart and a weekly close in this area will bring in a downside target of $50. This target while seeming quite a ways away is more logical than you might think, given the start of a major decline in commodity based companies.

If you own any Corn, Wheat, Coal, Oil or many of the other commodity based companies you may want to take a look at their positions and think about either hedging the position, scaling it back or selling completely out.

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