July 10, 2017 / 5:59 PM / 3 years ago

BUZZ-Mosaic: Piecing together positive momentum picture

** In wake of Mosaic reporting Q1 profit miss in early May, its shares fell to more than a 10-year low

** However, MOS has reversed to upside, and improving momentum suggests potential for greater rally

** MOS recovery gaining steam Mon, shares up 7 pct, its best daily percentage gain in nearly a year

** And recent rally coming as grain prices show life into Jul: soybeans hit highest level in 4 months, corn 1 year, and wheat 2 years

** Co had stated in its Q1 report that anticipates to benefit from improving potash and phosphate market conditions

** Street estimates reflect improving yr/yr revenue growth potential

** After near 20 pct yr/yr rev decline in FY 2016, estimates now call for sequential yr/yr gains through 2020 (Thomson Reuters data)

** Nevertheless, analyst opinion skewed slightly negative amid large hold camp; $26.00 median PT, however, about 8 pct above last

** Technically, MOS weekly RSI fell into deeply oversold territory in early May, but then strengthened into the Jun low. Chart: reut.rs/2uayPdh

** RSI return to, or into, overbought territory, can come with further MOS rally to challenge 100-WMA (now $28.22)

** 100-WMA has been a magnet in past rallies, now 17 pct above the last

** Reversal, and close, below $22.84, however, can suggest stalled rally, flip pressure back to downside

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