Technician’s Edge: Can the Agriculture ETF MOOve Over Resistance

Cheesy title, I know, but today’s column for GreenFaucet.com’s Technican’s Edge is about an overhead weekly resistance level to watch in the Agricultural (Agribusiness) ETF with symbol MOO, which has been pushed strongly higher by investors into a key final resistance level that may be broken.

Let’s take a look:

The main idea is that price has more than doubled off the November 2008 low into the current 61.8% Fibonacci retracement level just above $48 per share.

The higher price move has been permeated with lower relative volume, which appears to be an ‘across the board’ phenomena, including the S&P 500 and other major US Equity Indexes.

Trend structure is positive, moving averages are positive, and if buyers can push price above the 61.8% retracement, then this would set the stage for a continual push to higher levels.

Traders may be taking profits at this resistance level, and short-sellers might be stepping up, but we should know which outcome to expect by this or the next week.

My full commentary is in the post at the Technician’s Edge.  I mention that the recent push higher was – in part – driven by the cold weather that has swept most of the mid-west and Eastern United States, and if temperatures warm up (we saw a major drop in the price of orange juice futures today on news of warmer weather), then we could see the MOO fund price come down as well.

Let’s keep watching this level for clues as to what to expect going forward.

Corey Rosenbloom, CMT
Afraid to Trade.com

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