5 Technical Setups in Commodity Stocks
Another inverse head and shoulders setup is taking shape in shares of Syngenta (SYT), a Basel, Switzerland-based firm that gets its commodity exposure as an agricultural chemical producer. Because Syngenta's customers produce soft commodities, its sales are driven by the price levels growers are able to collect in the marketplace.
In Syngenta's case, the neckline level to watch is $64 -- above that price, this stock becomes a high probability trade to the upside. One thing that's immediately apparent on looking at SYT's chart is the abundance of gaps that have been occurring in shares lately. Those gaps, called suspension gaps, are the result of Syngenta's trading off U.S. exchange hours in Zurich. They can be ignored for technical trading purposes.Despite exposure to two different types of commodities, the trading implications in SYT are effectively the same as those in Consol Energy. To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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