Agriculture stocks are breaking out. Jay Woods says watch these levels
The chief market strategist of Freedom Capital Markets sees two stocks moving sharply higher.
TL;DR
- The VanEck Agribusiness ETF (MOO) is breaking out of a base, showing an inverse head-and-shoulders pattern with a target near $96.
- Deere (DE) has decisively broken through the $660-$670 resistance level, indicating a potential measured target of $830.
- CF Industries (CF) has also broken through its neckline resistance around $130-$133, with a measured target of $160.
- Both stocks and the ETF are exhibiting strong upward momentum, with key moving averages and momentum indicators (MACD, RSI) supporting the bullish outlook.
- Traders are advised to buy these breakouts and use stops just below recent breakout levels to manage downside risk.