NIA’s Western Potash (TSX: WPX) currently has the #1 most bullish chart we are aware of in the entire market both for the short and long-term. After reaching a new 52-week high one week ago of $0.36 per share, WPX experienced a healthy pullback due to profit taking from short-term traders who entered at $0.135 and wanted to take some money off the table – after gaining 166.67% in only six weeks! Most of these recent profit takers will end up chasing WPX and desperately trying to reenter as soon as the stock begins to explode toward $0.50 per share.
Following a healthy shake-out/profit taking day this past Thursday, WPX on Friday formed a bullish hammer pattern – the #1 strongest technical sign that a stock’s profit taking is over or almost over and it will soon resume its uptrend and reach new 52-week highs. Notice how on Friday the candlestick resembles a hammer with a long wick underneath – as a result of the stock bottoming mid-day, after opening at its high of day and later closing at that same price!
On Monday, WPX didn’t trade a single share below $0.26 and finished unchanged on light volume. On Tuesday, WPX’s volume began to pick up BIG TIME as the stock resumed it HUGE uptrend by rallying 15.4% to finish back up to $0.30 per share!