Monsanto Co. had a lengthy decline from $145.80 in 2008 to $44.61 in July, 2010, below a falling trend line (A-B – solid line).
In late 2010, the stock moved above this line (C) and started a new rising trend (dashed line).
The stock appeared to encounter resistance at about $77 in 2011 and then again at about $84 in 2012 (dotted lines), but eventually pierced above these levels (D) to confirm the bullish trend and higher targets.
Only a decline below $77-$78 would reverse the positive statusof this stock.
Point & Figure measurements provide targets of $99 and $109. Higher targets are visible.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.com
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