[Premium] Trade Of The Week

The Fertilisers and Pesticides industry has been mixed at best, but there are several names working well.

One of those names is PI Industries, which confirmed a breakout on Friday by closing above 2,050. With this move above resistance, the stock is reconfirming its long-term uptrend and suggesting further upside towards 2,885 is ahead.

Click on chart to enlarge view.

These are the types of stocks we want to be buying in this environment. Those exhibiting relative strength and absolute momentum, with well-defined risk and a reward/risk skewed in our favor.

In this case, we have extremely well-defined risk, so as long as prices are above 2,050 on a closing basis, then we can be long with a target of 2,885 over the next 6-12 months.

Make sure to check out our other weekly post, "Three Charts For The Week Ahead." And if you haven't read our Q3 Playbook, check out part 1 and part 2 for all of our views on the market.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team