Agribusiness ETF Should See Upside Continuation
01/05/2009
One sector that I continue to follow closely is agribusiness, which technically argues for upside continuation from a base-like pattern structure that has developed since early October. A hurdle of key resistance at 29.25/75 in the Market Vectors Agribusiness ETF (AMEX: MOO) should trigger upside continuation towards 35.00-36.00 thereafter.
Perhaps such a move in the MOO will be a reflection of global food deficits going forward and/or weather-related crop failures that enable agribusiness names. Whatever the case, as long as the MOO remains above its upturning 50 DMA (now at 25.43), I will be "friendly" to the sector.
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
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