Hamilton's E-Wave Analysis

AGU , Agrium update

agu feb 9 2016

In 2012 this stock looked ripe for a drop. All the others did but not this one, which is plain to see from the relative performances.

So Agrium did not  behave as expected and went on up for about three years, making a new high in early 2015. This move from the 2009 lows is messy and has a lot of overlap, but if you break it down you have two distinct, almost equal, legs up. In the middle there is a pause which has all the characteristics of a running correction. The whole thing is quite symmetrical which is why we prefer the B-wave scenario to that of a 5th wave. Both, by the way, would have the same target around $25, by they would differ in how you get there. (a single 5 wave sequence or an a-b-c ).

Ultimately AGU should join the others once again somewhere near the 2006 levels. This would make an interesting pairs trade, long 5 POT(or MOS) against short one AGU.