What does Aguia Resources Ltd do?
Aguia Resources Ltd [ASX:AGR] is a company operating in Brazil, developing large scale potash projects, to supply Brazil’s agriculture sector with a domestic source of fertilizer.
Brazil’s is an agricultural powerhouse, but reliant on imports of fertilizer. Aguia sees an advantage by developing a domestic source.
Potash is highly sought after. It is used mostly for fertiliser where potassium is deficient in the soil. Potash fertilisers correct this problem and boost crop yield and quality significantly.
That’s interesting, but what is the chart telling us?
What does the chart look like?
I find it helpful to bring up a chart. Here is the daily chart of AGR.
The chart telling you in advance, positive news was possibly coming for this company.
What now for AGR shares?
Just as the chart forecasts, AGR released positive news yesterday; a preliminary assessment of their main deposit has indicated that the project could deliver a value of AU$372 million.
So you have to be a little careful now, yesterdays news was very positive. We just have to wait and see how it reacts to that news.
This can happen sometimes; news was likely, but it has come earlier than you would like to see.
This is a company you could still follow though; see how it reacts to the news. Use yesterday’s news as a reference point. If it should break over prior news, then you absolutely know what is coming next and you can be prepared for it. You just need a little charting knowledge on how to proceed. You can get that here.
Research Analyst, Cycles, Trends and Forecasts