The rise of inflation has investors quietly returning to many commodity-related stocks that were popular 2003-2007. One of them is Bunge.
Earlier this month, the soybean processor touched its highest level in over 13 years. It pulled back but is trying to stabilize around the same $92 area where it peaked last May. Is old resistance new support?
BG is also near its 50-day simple moving average.
Next, notice how the stock rallied after its last three earnings reports. (Each beat estimates on the top and bottom lines.)
Third, something of a rotation seems to be taking place because other similar names like Archer Daniels Midland,
MOS
, CF Industries and
DE
are also above their 50-day moving averages. (Unlike the S&P 500.)
Overall, it’s been a tough start to the year for most major stocks. But certain corners of the market have held up better. Traders may start focusing on the emerging relative strength in agriculture-related names like BG.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
Earlier this month, the soybean processor touched its highest level in over 13 years. It pulled back but is trying to stabilize around the same $92 area where it peaked last May. Is old resistance new support?
BG is also near its 50-day simple moving average.
Next, notice how the stock rallied after its last three earnings reports. (Each beat estimates on the top and bottom lines.)
Third, something of a rotation seems to be taking place because other similar names like Archer Daniels Midland,
MOS
, CF Industries and
DE
are also above their 50-day moving averages. (Unlike the S&P 500.) Overall, it’s been a tough start to the year for most major stocks. But certain corners of the market have held up better. Traders may start focusing on the emerging relative strength in agriculture-related names like BG.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.