The Canadian company Potash Corporation of Saskatchewan, specializing in fertilizer, is in a difficult situation since 2015.

The fundamental situation of the company remains fragile. Currently, the company is trading 3.37 times its sales, which is still a significant valuation for the company. The turnover for the current year is expected in net decrease of over 17% at CAD 5.2 billion. Similarly, the earnings per share is also estimated in decline in 2016.

Graphically, we see that the stock Potash Corporation of Saskatchewan is in a downward dynamic with decreasing moving averages. They also act as resistance point, evolving towards the support at CAD 18.8, the next support area.

Investors could open a short position with the share Potash Corporation of Saskatchewan under the CAD 22.8 resistance and will aim for a target price of CAD 18.86 and in a second time CAD 16.4 support. However, they will use a stop-loss above the CAD 21.3 intermediate level, that would invalidate our bearish strategy.