Agribusiness ETF Defends Breakout with Strong Upturn after Throwback

Agribusiness ETF Defends Breakout with Strong Upturn after Throwback

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Chartists missing a breakout can watch for a “throwback”, which offers a second chance to partake in the breakout. A throwback occurs when price breaks out, extends higher and then pulls back to the breakout zone, which turns first support. Price then turns back up and resumes its breakout. Today’s report will show a successful throwback and strong upturn in the Agribusiness ETF (MOO).

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MOO Ends Correction and Resumes Long-term Uptrend

The first chart shows daily bars over the last 13 months. I use this chart to establish the long-term trend and identify bigger patterns at work. MOO surged from November to February, corrected into June and broke out with a surge in early July. This breakout is long-term bullish because it signals an end to the correction and a resumption of the 25% advance. New highs are expected in the coming weeks/months.

The indicator window shows the PPO(5,200,0) to identify the long-term trend. Keep in mind that all moving average based indicators lag and are prone to whipsaws. An uptrend signals with a move above 1% and a downtrend with a move below -1%. The PPO moved above +1% in early July to signal a long-term uptrend. This confirms the price breakout on the price chart.

TrendInvestorPro focuses on tradable pullbacks within bigger uptrends. We use retracements, the 200-day SMA, broken resistance levels and other tools to identify Bullish Setup Zones, which are areas to watch for firming and a reversal. Recent setups included the BlockChain Tech ETF and the Physical Uranium ETF.
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A Successful Throwback and Strong Upturn

The next chart shows candlesticks over the last seven months. Here we will focus on the throwback and Bullish Setup Zone. MOO surged 10% into late July and then fell back to the breakout zone with a decline to the 80.5-81 area. This is the throwback that offers a second chance to partake in the breakout.

In addition to broken resistance, there are several technical studies pointing to support in the 79.5 to 81 area (blue shading). Here we have the 50-61.8% retracements, the July 2nd gap and the rising 200-day SMA.

MOO hit the top of this zone, firmed for two weeks and turned back up this week. With the strong breakout at 82.5, both the short-term and long-term trends are in sync (up). A close below 80 would call for a re-evaluation.

There are several AI-related ETFs with breakouts in early August and throwbacks this week. TrendInvestorPro will monitor the throwback zones for signs of firming and an upturn. Click here to take a trial and gain full access.

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Utes and Energy Show Strong Breadth – Utilities SPDR Extends after Bullish Signal

Long-term breadth captures the market mood here in July. Technology, Consumer Discretionary and Communication Services are lagging, while Energy, Utilities and Finance are leading. Despite relative weakness in three key groups, there is a bull market somewhere because some 65% of S&P 500 stocks are above their 200-day EMAs. Today’s report will rank sector breadth and show bullish signals for the Utilities SPDR. $XLE $XLU

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Agribusiness ETF Forms Outside Reversal and Surges off Bullish Setup Zone

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. $MOO

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The technology sector is weighing on the S&P 500 as SPY corrects in June. Other sectors, however, are picking up the slack with industrials and healthcare moving higher. This June rotation is also benefitting the Regional Bank ETF and Biotech SPDR, which hit new highs. Today’s report will cover the recent rotations and show how the trade the trend in these two ETFs. $XLI $XLV $XLU $XLF $KRE $XBI $KBE $IBB $ITA

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Small-caps Lead – Breadth Improves as SPY Pulls Back – Industrials SPDR Sets Up

SPY pulled back in early June, but remains in bull market mode with improving breadth. The bull market is broadening with more stocks moving above their 200-day SMAs. This is especially true for small-caps, which were leading in March and continue to lead in June. Within the S&P 500, I am seeing a bullish setup in the Industrials SPDR. $SPY $IJR $SPXA200R $SMLA200R $XLK !GT200XLI

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