Chemical Stock Could See More Gains Says Signal

CF Industries Holdings Inc.(NYSE:CF) stock continuing its consolidation below $124, following a pulling back from its September highs, which came within a chip shot of the stock's early March record. CF sits roughly 55% higher year to date, but more gains could be on the way as the stock crosses above the 80-day trendline, a historically bullish signal. 

Per Schaeffer's Senior Quantitative Analyst Rocky White, this “crossover” event has happened 16 other times over the last 10 years.CF stock was higher one month later 63% of the time after these signals, averaging an 5% gain. From its current perch, a move of this magnitude would put the shares back near $125 for the first time since September.

There is plenty of room for upgrades to enter the ring, with analysts leaning bearish. Heading into today, 16 of the 20 covering brokerages sport a "hold" or "strong sell" recommendation.

Lastly, CF Industries stock has tended to outperform options traders' volatility expectations as well. This is per its Schaeffer's Volatility Scorecard (SVS) of 77 out of 100, indicating now is a good time to be a buyer.