Fertilizer Stocks Ready To Sprout?: CF, MON, POT

The agriculture chemicals and fertilizer stocks have been a great group for traders both before and after the steep bear market. This group has been incredibly volatile, while also enjoying several sustained trends. Recently, this group has fallen under the radar as it consolidates and other groups step in to capture investor's attention. However, some of these stocks are starting to perk up and, due to their history, traders should be paying attention.

Monsanto Company Common Stock(NYSE:MON) is one of these stocks that has started to show some life as it recently cleared a channel it had been following during its consolidation. MON appeared to be lifeless in mid-June, until a sharp gap on increased volume ignited the stock. It subsequently rallied through the top of the channel and has been consolidating near its recovery highs. This is bullish action and traders should monitor these highs near $76 to see if MON can overcome this resistance level. (For more, see Monsanto Makeover Pays Off

Potash Corporation of Saskatchewan, Inc. (NYSE:POT) is another stock that has started to show some life. It also has been following a channel as it consolidates, and rallied along with MON in late June. It hasn't cleared the channel definitively like MON, but is in the process of testing for a breakout. Traders should keep a close eye on it to see if buyers can assume control at this point. (For related reading, also see 5 Things To Know About Potash.)

CF Industries Holdings, Inc. Co (NYSE:CF) hasn't quite followed its peers in either the consolidation, or the attempted breakout. In fact, this stock has been more volatile as it shakes both shorts and longs out near the boundaries of the current base. However, one thing it does have in common is that CF is showing some signs of life as it rises to test aresistance level. The $155 area has been capping recent rally attempts, and traders should keep a close eye on this area as CF attempts to push through again.

Summing Up
How the markets trade through the rest of the summer will likely have a deep impact in how these stocks behave as they attempt to clear these resistance levels. If the markets fall apart, then these stocks will likely suffer alongside them. However, with the power of the recent market bounce, it is possible that the markets can resume heading higher in the near future. If this does transpire, then the agriculture stocks could easily reclaim their spot in the limelight and provide a great trading opportunity.