Ag stocks have been very weak and today’s bounce does nothing to convince me this sector can sustain a move higher. Notice how when it was moving higher a few months ago it lived on top of the 20 day moving average with high volume accumulation days. Lately it’s found itself on the bottom of this moving average finding resistance whenever it tries to break above it. Volume has also been coming in very heavy on selling days while up volume remains weak.
Should this ETF reverse in the coming days falling back under it’s 20dma, this sector will almost certainly see new lows. Pick any one of the stocks I mentioned below because they all have the same down-trending pattern.
