Monday, March 17, 2008

Terra Nitrogen - TNH

TNH is on the verge of making a move one way or the other as it breaks out of the triangle pattern it has been tied up in for the last 9 months or so.

While patterns like this are hard to get a handle on which way price will break, the OBV sheds some clues as to what the odds of the break should be and that is down.

So we wait patiently for the stock to perhaps make a test of the lows at $62 and upon what technical shape the stock is in at that point will dictate whether we accumulate shares or not.

No question we have taken a mountain of money out of TNH with our original purchase at $17 and then selling a bit on the early side at $97. Another purchase was then made upon our $62 target being achieved and we scored another double when we parted company with the stock at $140. So we seem to be very in tune with this stocks behavior and another move lower should put us back into the long side.

Keep this one on your radar as when it moves, It Moves!

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