Are the Bears Taking Control over Monsanto?

Published on Friday, 20 January 2012 04:12 Written by TradersHuddle Staff

New York, January 20th (TradersHuddle.com) - Shares of Monsanto Company (NYSE:MON) ended the trading session lower by $0.63 or -0.78% from its previous close. Monsanto's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Monsanto Company (NYSE:MON) principal activities are to provide agricultural products consisting of the global seeds and related traits businesses and biotechnology platforms. Its major brands include DEKALB, Channel Bio for corn, Asgrow for soybeans, Deltapine for cotton and Seminis and De Ruiter for vegetable seeds.

Monsanto's current stock range is defined by calculated support defined at $67.09 and by the resistance level at $81.43, which should be used by traders planning their trades.

Traders wanting to establish a position in Monsanto stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Monsanto shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: