Agribusiness ETF Forms Outside Reversal and Surges off Bullish Setup Zone
- Arthur Hill, CMT
Welcome to the Chart Fix!
The Agribusiness ETF is setting up bullish as affirms support with an outside reversal week and surges off a Bullish Setup Zone. Today’s report and video will explain the rationale behind these zones and show the key level to watch for a breakout. We will also look at performance for the top ten component stocks.
- Agribusiness ETF Hits Moment of Truth
- Majority of Components in Uptrends and Up Year-to-date
- Weekly Outside Reversal Affirms Support from Prior Breakout
- Surge off Bullish Setup Zone Paves Way for Breakout
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9 of 11 Component Stocks are Up in 2026
The first chart shows year-to-date performance for the Agribusiness ETF (MOO) and the top eleven component stocks. MOO is up 8.5% year-to-date, and nine of the eleven stocks are up. Zoetis (ZTS) is the big loser and Tyson (TSN) is unchanged. 2026 performance shows more strength than weakness within the ETF.
7 of 11 Top Components in Long-term Uptrends
The next image shows CandleGlance charts for MOO and the top 11 components. Each chart shows the 200-day SMA and year-to-date performance in the indicator window. In the upper left, MOO is battling its 200-day SMA. Elsewhere, seven of the eleven components are above their 200-day SMAs (blue ovals), which means the majority are in long-term uptrends. This supports the bullish thesis for MOO.
MOO Affirms Support with Outside Reversal
The first chart shows weekly candlesticks with three breakouts. First, MOO broke resistance at 70 with a surge off the April 2025 lows. Second, the ETF broke out of a falling channel in December. Third, MOO broke a major resistance zone in January (pink shading) and recorded a 52-week high.
MOO caught my eye because it returned to the resistance zone and firmed with an outside reversal last week (blue oval). A classic tenet of technical analysis is that broken resistance turns into support.
The outside reversal affirms support. This pattern shows buyers stepping in as MOO opened weak on Monday (22-June), closed strong on Friday (26-June) and formed a long white candlestick. This candlestick also engulfed the prior black candlestick, which makes it a bullish engulfing pattern.
MOO Bounces off Bullish Setup Zone
The next chart shows daily candlesticks with the 200-day SMA. When an ETF is in a long-term uptrend and correcting, I use retracements, the 200-day SMA and prior breakouts to define Bullish Setup Zones. These are zones that may mark the end of the correction. Once price hits these zones, I look for signs of firming and buying pressure that may lead to a breakout reversal. TrendInvestorPro specializes finding these types of setups for stocks and ETFs.
The blue shading marks a Bullish Setup Zone. Here we have the 50-61.8% retracements, the rising 200-day SMA and the prior breakout. It is normal for a correction to retrace around 50% of the prior advance and return to the prior breakout. In a long-term uptrend, the rising 200-day also marks a level to watch for signs of support.
MOO firmed in this Bullish Setup Zone and surged the last seven days. A falling wedge defines the current correction with resistance marked at 81. A breakout here would reverse the falling wedge and signal a continuation of the long-term uptrend. Such a move would also shows follow through to the outside reversal (confirmation). Upon a breakout, I would re-evaluate on a close below 76.
Recent Reports and Videos at TrendInvestorPro
- Small-caps Lead, Space Sets Up, Telecom Breakout
- Stock Setups: First Solar, Quanta and Arista Networks
- Copper and Base Metals Set Up Bullish
- Breadth Supports the Bull Market (%Above 200-day)
- Click here to take a trial and gain full access.
