Is Bunge Breaking Out?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, Mosaic , CF Industries and Deere 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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