In our February 11 review of the charts of ag giant Bunge Ltd. (BG) we wrote that, "Traders could look to buy BG on a pullback to the $95 area. Risk to $85. Our first upside price target is the $128 area. Long term, BG could rise to the $300 area or a ten-fold advance from its 2020 nadir."
Traders may or may not have executed that trade successfully but now prices are down in the area of our recommended stop out point.
Meanwhile, sell-side firm raised their fundamental opinion of the agricultural company Friday to an "overweight" rating with a $106 price target. In addition to being a major exporter the company is involved in food processing, grain trading and fertilizer -- businesses we can't do without.
Let's check on the charts and indicators.
In the daily bar chart of BG, below, we can see a price zenith in April followed by a correction. BG has declined back to its December lows and is showing signs of bottoming. Prices are trading below the 50-day and the 200-day moving average lines but we can see that the $85 area is acting as a support zone.