The chart’s price picture indicates that the recent surge in the MOS share price may have stalled, with calls for a correction beginning to gain momentum. The recent price surge in the shares of The Mosaic company follows analysts’ consensus calls on 18 February of a potential 4.4% uptick in the stock. At the time, twenty institutional analysts had called for a BUY, with a price target of 48.33 called on the MOS share price. The stock has exceeded this target, tilting towards the upper band of the price target set at 65.00. The lower band was called at 38.00.
Last month, the Mosaic company signed a share repurchase agreement with Goldman Sachs, which will allow the company to buy back $400million of its common stock on an accelerated basis. The deal saw 80% of the total number of shares involved being delivered to the company on 28 February, prompting a 23.5% uptick in the MOS share price. Since then, there has been a slight correction as the evolving double top pattern seeks completion.
The evolving double top pattern is yet to attain completion. Wednesday’s bounce has ensured that the neckline has stayed intact. The 59.86 resistance barrier is the immediate upside obstacle. A break of this level sets up a potential run-in with 64.46 (7 March high). Only when this barrier gives way can the 11 January 2010 high at 68.39 come into the picture.
On the other hand, a breakdown of the neckline at the 56.13 support level completes the double top. It sets up a corrective decline that targets 53.18 initially before 47.56 comes into the mix as an additional target. 43.13 and 40.47 (27 October 2021 low) are additional targets to the south if the corrective decline is more extensive.
Follow Eno on Twitter.
This post was last modified on %s = human-readable time difference 16:45