We're seeing the exact same setup in shares of Swiss agri-chemical firm Syngenta (SYT). Like MMC, Syngenta has been trading within a tight trading range, bouncing off of trendline support seven times since June. While those drops to support may seem like a bad thing at first glance, they're actually bullish. They indicate that SYT can easily catch a bid at support, a fact that makes the trendline a stronger level for traders.
Each of the arrows on the chart represents a thrust up off of support; it's a move where buyers swept in to bid SYT higher after selling pressures brushed shares against their dynamic support level. Incidentally, those thrusts higher are the exact time you want to be a buyer in Syngenta.
You may notice that Syngenta's chart looks "gappy" -- price action is filled with holes. Those gaps, called suspension gaps, are caused by off-hours trading in SYT on Zurich's SIX Swiss Exchange. For technical trading purposes, they can be ignored.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV