Potash Corporation of Saskatchewan Inc. (POT:TO)

Stocks got really cheap last Friday as well as today thanks to the Goldman Sachs fraud story. One stock that really caught my eye for a reversal was Potash. It has been in a steady decline since mid March. The market seems to be in an unstoppable bull market. Even the Goldman Sachs news couldn't keep the market down for too long. Potash made a nice reversal today off a great support level. See below for a 6 month chart with a developing trading channel and attractive stochastics.



Notice how there is a channel forming between the blue lines. Today, the stock bounced off the lower blue line with a nice reversal candle. I see the stock staying within this blue channel. Thus, an entry at these levels yields amazing risk reward potential. A stop around the 104$ level under the previous low end of January would be a good place to exit if the stock were to break down below that level. So, we see about a 4$ downside risk with 15-20$ upside potential where the upside is much more likely than the down. That is a good risk/reward scenario for me. I picked some up today, you should too!