More Bearish Alert on Bunge(BG)

The stock has retraced 22.6% from its recent high price of 127.64 which occurred on 23-Jun-2008. The current price is below the 50 day moving average of 113.22. Sustained move below the average could put the recent uptrend in jeapordy. S&P gives BG a neutral 3 STAR (out of 5) hold rating. BG appears on the Investors Observer Momentum Plays list.

The Naysayers are worried about the timing of the deal — corn prices are currently soaring amid a run-up in global demand. Actually, corn prices have surged about 75% over the past year and 17.5% since early June. when flooding throughout the Midwest lowered the outlook for this year’s crop yield.

As shown below, the chart is currently forming a Handle Cup Bearish Pattern:


Another bearish signal is The SMA 20 traverses down the SMA 50, see on the chart below:


Bunge is worth to be shorted.

Please Note!

This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

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