Stocks in the fertilizer space have struggled all year long with questions about demand and pricing issues. Monsanto, the creator of Roundup and other ground nutrients, has been hit hard and is under severe distribution. The company is trying to close a deal with the Swiss-based Syngenta, but that is now in question.
Monsanto Stock Chart (NYSE: MON)
As we consider the general stock landscape after the recent carnage, some names have recovered well while others that have not. Monsanto’s performance has been dreadful; stocks and options should be sold on any rally.
As you can see in the chart, the channel is defined, but just recently the stock was so weak it fell right through on increasing turnover. That is not a good sign, and we see that playing out in the very weak momentum indicators. High distribution plus poor price action equals AVOID.
Monsanto Chart Analysis
Take a deeper dive into the chart action (NYSE: MON) and learn how to read the technicals and my analysis as I mark up our chart of the week.
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Monsanto Company, together with its subsidiaries, provides agricultural products for farmers worldwide. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The Seeds and Genomics segment produces row crop seeds, including corn, soybean, cotton, and canola seeds principally under the DEKALB, Channel, Asgrow, and Deltapine brands; and vegetable seeds consisting of tomato, pepper, melon, cucumber, pumpkin, squash, beans, broccoli, onions, lettuce, and other seeds under the Seminis and De Ruiter brands. This segment also develops biotechnology traits that assist farmers in controlling insects and weeds in corn, cotton, and soybean crops under the SmartStax, YieldGard, YieldGard VT Triple, VT Triple PRO, and VT Double PRO, as well as Intacta RR2 PRO, Bollgard and Bollgard II, Roundup Ready and Roundup Ready 2 Yield, and Genuity brands; and licenses a range of germplasm and trait technologies to seed companies.