Bunge Ltd. (BG) is a household name with farmers but not widely known outside that community. The company was upgraded Thursday by TheStreet's Quant Ratings service. Let's check the charts to see how these two investment approaches can work together.
In this daily bar chart of BG, below, we can see that prices may have made a "lopsided" double bottom pattern with a low in June/July and a slightly lower low in late September. BG has rallied smartly in October and has rallied above the 50-day moving average line and has retested the 200-day moving average line.
The On-Balance-Volume (OBV) line shows a decline from April to late September and then the OBV starts a rise.
The Moving Average Convergence Divergence (MACD) makes a higher low in September than July for a bullish divergence when compared to the price action which shows a lower low. The MACD oscillator is now crossing above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of BG, below, we can see an improving technical picture. Prices have rallied to test the declining 40-week moving average line. The weekly OBV line has made a double bottom pattern. The MACD oscillator is crossing to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of BG, below, we can see an upside price target of $105.
In this weekly Point and Figure chart of BG, below, we can see a potential price target in the $132 area.
Bottom line strategy: Shares of BG have rallied sharply higher in recent days. Some sort of downward correction or pullback is possible and traders looking to go long BG should wait for that opportunity before going long.
