POT (Potash) at 45.69 Forming Potential Double Bottom near Long-term Support Zone (Intraday BUY)

POT extended the decline off the 60.42 high to reach 44.50 (26 Sept low) and 44.52 (29 Sept low) near the 3-1/2-year 43.76/42.93 key support zone (28 Jan/7 Feb 2008). The bullish RSI divergence suggests a potential double bottom forming from the 44.50/44.52 lows. Recycled strength above 47.40 (Resistance 1) near the 2-week falling trendline (from 58.36 high) would re-open 50.41(Resistance 2) which, if breached, would confirm the double bottom and extend the rebound towards 54.32 (Resistance 3).

However, a break below 44.50 would risk a 43.76/42.93 retest. That would negate and stop out the trade.

Trading Indication:
Short-term (Intraday): Buy at 45.00 or lower;
Target at 50.41 and higher;
Stop Loss at 44.50 (1.0%)
Long-term: Possibly sell higher

NUS (Nu Skin Enterprises ) at 41.75 Heading Lower following Breakdown from Triangle Consolidation (Intraday SELL)

NUS posted a new YTD high at 46.93 (20 Sept) underpinned by the 22-day bull trendline. The downside reversal paused near the bull trendline forming a 3-day triangle consolidation pattern before breaking down. The oversold RSI and bearish trend studies continue to point lower. While the 43.28/44.48 resistance zone caps, scope remains for further weakness towards 40.55 (Support 1) then 38.85 (Support 2) ahead of 36.41 (Support 3).

However, recycle strength above 43.28 would negate and stop out the trade.

Trading Indication:
Short-term (Intraday): Sell at 42.50 or higher;
Target at 38.85 and lower;
Stop Loss at 43.28 (2.0%)
Long-term: Possibly buy lower

WFM (Whole Foods Market, Inc.) at 71.00 RSI Bearish Divergence Signals Potential Topping (Intraday SELL)

WFM probed below the 70.69 low to confirm the RSI bearish divergence from the 72.76/72.85 highs which are short of the 73.33 all time high. While the 72.85/73.33 key resistance zone caps, scope remains for further weakness towards 69.04 (Support 1) then 66.51 (Support 2). A downside break there would confirm the lower high at 72.85 and initiate the next leg down towards 64.37 near the 6-1/2-week trendline support (Support 3).

However, recycle strength above 72.85 would negate and stop out the trade.

Trading Indication:
Short-term (Intraday): Sell at 71.50 or higher;
Target at 66.51 and lower;
Stop Loss at 72.85 (2.0%)
Long-term: Possibly buy lower

FCX (Freeport-McMoran Copper & Gold) at 33.93 Breaks out of 3-day Base (Intraday BUY)

FCX broke out of the 3-day base with the intraday RSI shifting upwards. While the 30.97/31.15 intraday support zone holds, scope remains for further upside towards 35.35 (Resistance 1) for gap closure near the down trendline (from the 16 September high). An upside break above the trendline resistance is needed for further strength towards 37.41 (Resistance 2) then 38.63 (Resistance 3) which guards 40.77 (Resistance 4).

It would take a return through the 31.15/30.97 support to negate the rebound and stop out the trade.

Trading Indication:
Short-term (Intraday): Buy at 31.80-32.50 or lower;
Target at 35.56, 37.41, 38.63 and higher;
Stop Loss at 31.15 (>2.0%)
Long-term: Possibly sell higher

USO (United States Oil Fund) at 31.30 Rising Wedge Breakdown Underpins Further Decline towards 25.50 (SELL)

USO completed a multi-month head-and-shoulder top after breaking below the 35.14 neckline support to reach 30.31 (09 Aug). The current 6-week consolidation formed a bearish rising wedge pattern ahead of the breakdown towards 30.31 (Support 1) for a potential retest. Clearance below would open 28.23 (Support 2). (30 Apr 2009 low) which guards 25.50 (head-and-shoulder top target measured from 35.14) (Support 3).

It would take a return above 34.06 (Resistance 1) to neutralize the near-term selling pressure and re-open 35.08 (Resistance 2) near the wedge resistance and the neckline as well. Only a decisive breach of the strong resistance zone would negate the wedge pattern and allow bulls to seek 39.25 (Resistance 3).

Trading Indication:
Short-term (Intraday): Sell at 32.30 or higher
Target at 28.23 and lower; Stop Loss at 33.00 (2%)
Long-term: Possibly buy lower

IWM (iShares Russell 2000) at 66.41 Potential Breakdown from the Triangle Consolidation Pattern (SELL)

IWM has been consolidating within a 7-week triangle pattern (from 12 Aug low/02 Sep high) following the sharp decline to reach 63.76 (12 Aug). The bearish momentum and trend studies on the weekly chart remain pointing lower. A break below 66.37 near the triangle support (from 12/26 Aug weekly lows) would open 63.76 (Support 1) for a potential retest. Clearance below would confirm the bearish triangle pattern and initiate the next leg-down towards 58.80 (Support 2). Further weakness below would allow bears to seek 47.42 (Support 3).

However, recycled strength above 73.89 (Resistance 1) would negate the near-term weakness and re-open 80.99 (Resistance 2). A sustained break above would shift the medium-term focus towards 85.97 (Resistance 3).

Trading Indication:
Short-term (Intraday): Sell at 67.00 or higher
Target at 58.80 and lower; Stop Loss at 69.00 (3%)
Long-term: Possibly buy lower

CTRP (Ctrip.com International) at 38.19 Forming Potential Multi-month Top on Break Below Key Level (SELL)

CTRP broke through the 2-1/2 year rising trendline (from 06 Mar 2009/18/25 March 2011 weekly lows) to reach 35.36 before consolidation took hold. The bearish momentum and trend studies on the weekly chart continue to point lower. While 43.20 (02 Sep high) near the long-term trendline resistance caps, scope remains for a retest of the 35.36 (12 Aug low)/35.44 (09 May 2008 high) support/resistance cluster near the key level at 35.00 (Support 1). A downside break there would weaken the medium-term outlook and initiate the next down-leg towards 31.35 (Support 2) near 50% retracement of the 9.50 (06 Mar 2009 low)/53.16 (05 Nov 2010 peak) rally. Further weakness there would expose 26.59 (Support 3) near 61.8% of retracement. However, recycled strength above 43.20 (Resistance 1) would improve the outlook and allow bulls to seek 47.54 (Resistance 2) which guards 50.47 (Resistance 3).

Trading Indication:
Short-term (Intraday):
Sell at 42.5 or higher
Target at 31.35 and lower; Stop Loss at 43.20 (1.7%)
Long-term: Possibly buy lower