Technicals ,

Western Potash (TSX: WPX) New Key Breakout Point

NIA's predictions about Western Potash (TSX: WPX) in recent weeks have been practically perfect. When we initially announced it on December 12th at $0.135 per share as our #1 stock suggestion for 2017, we calculated that it had a key breakout point of about $0.21-$0.22 per share. NIA said that WPX at $0.135 was a sure thing to rapidly rise to its key breakout point and had almost no downside risk considering it was sitting on about $0.15-$0.16 per share in cash with no debt. NIA predicted that after WPX surpasses its key breakout point, it would immediately explode on HUGE volume to a minimum of $0.33-$0.34 per share within 3 to 5 trading days. NIA was 100% correct!

We stressed that some brief profit taking would likely occur at this point, but not to worry because those who take profits too early after a small 163% gain will regret it big time. We explained that no real resistance would exist at $0.33-$0.34 because when WPX raised $80 million in a 2015 private placement at $0.3358 – all of the shares went to a single strong long-term Chinese shareholder. NIA predicted that as soon as the brief profit taking subsided – a rapid rally to $0.50+ would follow!

We haven't updated you on WPX since one week ago when the stock closed at $0.35 following major new developments involving multi-billion dollar Chinese investors – including a new shareholder that's beginning to pour money into WPX: a $3 billion market cap publicly traded Chinese company that has so far accumulated a 4.7% stake in WPX.

We knew that a few NIA members who were already up 163% were likely to take some money off the table, but the profit taking appears to be over as big money from China resumes its recent HUGE accumulation. Anybody who exited will likely end up chasing WPX higher and desperately trying to reenter at much higher prices in the days/weeks ahead!

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