Chart Analysis » MON http://chart-analysis.com/stocks-etfs Trend Analysis for Stocks and ETFs Mon, 10 May 2010 13:35:39 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 MON Chart – Better To Wait For Now http://chart-analysis.com/stocks-etfs/2009/10/05/mon-chart-better-to-wait-for-now/ http://chart-analysis.com/stocks-etfs/2009/10/05/mon-chart-better-to-wait-for-now/#comments Mon, 05 Oct 2009 16:44:14 +0000 Alex F http://chart-analysis.com/stocks-etfs/?p=487 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.

mon-chart_2009-10-5

]]> http://chart-analysis.com/stocks-etfs/2009/10/05/mon-chart-better-to-wait-for-now/feed/ 0 MON Chart – June 24, 2009 http://chart-analysis.com/stocks-etfs/2009/06/24/mon-chart-june-24-2009/ http://chart-analysis.com/stocks-etfs/2009/06/24/mon-chart-june-24-2009/#comments Wed, 24 Jun 2009 17:13:04 +0000 Alex F http://chart-analysis.com/stocks-etfs/?p=288 I charted Monsanto (MON) around lunchtime while it was trading $75.89.  (Disclosure, I’m long 100 shares with a covered call at July $80).   Monsanto announced earnings today which were positive overall and it started the day up, but then came the information of some of their changes to how they run their business.  Apparently the Street doesn’t like it.  This is what the chart tells me:

  • MON hit resistance at the point of its 10, 20 and 50 day moving averages after it fell below those moving averages a few days earlier.
  • MON is at the bottom of it current trading channel
  • MON bounced off previous support around $75.00
  • Williams %R remains in oversold where it doesn’t tend to stay for long periods

Opinion = I’m staying long my MON position for now.  I expect MON to shake off some of its current funk as it drifts lower for a few days and then I expect it to find better footing soon.  If the $75.00 range breaks support I could see MON trading down to $70.00 quickly.  At $70, I’ll have to consider buying more if that area shows support.

mon-chart_2009-06-24

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