MON Chart – Better To Wait For Now

I charted Monsanto (NYSE: MON) just after noon today when it was trading at $74.17.  I like following MON because it tends to follow its trend lines fairly consistently (I tried to color in the trading channels to show them better, not sure if it helps) and when the Williams %R indicator moves for or against MON, the indicator tends to be a great foreshadower.  A few days ago MON broke below its trend line of lower lows, but has stayed within the second trading channel I drew.  I left the current triangle white to show I’m not as comfortable with it down there after the longer trading channel broke.

MON’s history shows it’s best to wait for it to pull above oversold in the %R indicator.  This chart shows it’s not time to buy yet.  Once MON comes out of the lower gray area of oversold, MON should rip higher for a few days to a few weeks.  The longer it stays in oversold, the longer the rise up tends to be.  I’m already long in MON in my IRA and plan to keep it as a long term position, but if I see it break higher I’m buying my covered call back and will sit back to see how high it can go.