Since the October 4, 2011 stock market low nearly every stock sector has inflated sharply higher. Many traders and investors are expecting a lot of performance chasing to take place by the lagging financial institutions. One sector that has surged higher over the past six weeks is the agriculture sector. This week, we shall uncover the important support and resistance levels traders need to know when trading in this leading stock sector.
The Market Vectors Agribusiness ETF (NYSEARCA:MOO) has soared higher since October 4, 2011 when the ETF traded as low as $39.86 a share. Last week, the MOO closed at $49.95 gaining 0.80 cents by Friday’s stock market close. Traders should watch for this ETF to have near term resistance around the $52.50 level. Should MOO climb higher, the next major resistance levels will be around $56.00, and 60.50 levels. Should this highly followed ETF pullback from current levels there will be support around the $47.75, and $45.00 areas. Place these levels on your charts and trade them accordingly.
CF Industries Holdings Inc (NYSE:CF) is a leading agriculture stock that supplies customers worldwide. This stock traded as low as $115.34 on October 4, 2011. Last week, CF stock ended the trading week at $172.62 a share. Trader must watch for near term resistance around the $181.50 level. Should the stock climb above this resistance level the next important resistance areas will be around the $189.00, and $195.00 levels. If by some chance CF stock pulls back from the current price traders should watch for near term support around the $153.81, and $146.50 levels. Currently, the stock is trading above all of the major moving averages which places the stock in a confirmed uptrend at the moment.
Agrium Inc (NYSE:AGU) is another leading agricultural and chemical company that is headquartered in Calgary, Canada. The stock has soared sharply higher since its October 4, 2011 low of $60.15 a share. Last week, this agricultural leader closed at $78.66 a share. It is important to note that while this stock has rallied, it is yet to trade above its daily chart 200 moving average at $85.23 a share. Traders should watch for near term resistance around the $80.00, and $85.00 levels. If the stock trades above those levels the next important resistance area will be around the $89.50, and $95.00 levels. Should the stock pullback from its current levels there will be near term support around the $72.75, and $69.75 areas.
Nicholas Santiago
InTheMoneyStocks.com
