Mish's Market Minute

Is it Time to Watch the Agricultural Tech Trend?

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Supply chain issues have become a common term heard throughout 2021 now that companies are struggling to bring back pre-pandemic supply levels. With that said, scaling supply is not so easy and takes time. This is especially tough within the agricultural space, which operates on cycles and can take multiple years to increase yields. Therefore, the agricultural technology trend is becoming even more critical to the way we farm and produce food.

This problem opens the door not only for innovative companies, but for investors who see the trend unfolding. Agricultural technology generally refers to any tech involved in farming, from genetically modified seeds to new machinery, water/soil management, and more. Currently, companies such as Origin Agritech (SEED) and AppHarvest (APPH), are on our watchlist.

SEED's recent burst in price action gives it some of the strongest momentum. However, we would next like to see it confirm a recuperation phase with 2 daily closes over its 50-day moving average at $10.75. Additionally, APPH also needs a break over its 50-DMA, as it has resistance nearby at $15.30 dating back to 03/05. Once it clears the 50-DMA, the next major resistance level comes in at $20.00.


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For more Agri-tech picks and trade parameters, watch the Monday, July 12 edition of StockCharts TV's Your Daily Five. Mish goes through the mega-trend stocks that have already flown and stocks that could have tremendous upside.

Mish walks viewers through both bullish and bearish reversals on the latest edition of StockCharts TV's Mish's Market Minute. She demonstrates how to interpret these, how to use the momentum indicator to confirm them and how to trade them in different time frames.


ETF Summary

  • S&P 500 (SPY): New highs.
  • Russell 2000 (IWM): Sitting in a choppy area. Needs to clear highs. 234.50 area.
  • Dow (DIA): 351.09 high to clear.
  • Nasdaq (QQQ): Holding near highs.
  • KRE (Regional Banks): Needs to stay over 63.63.
  • SMH (Semiconductors): 245 main support area. 262.50 resistance.
  • IYT (Transportation): 251.78 support.
  • IBB (Biotechnology): 159 support area. 165.79 resistance.
  • XRT (Retail): 99.24 main resistance.


Forrest Crist-Ruiz

MarketGauge.com

Assistant Director of Trading Research and Education

Mish Schneider
About the author: serves as Director of Trading Education at MarketGauge.com. For nearly 20 years, MarketGauge.com has provided financial information and education to thousands of individuals, as well as to large financial institutions and publications such as Barron’s, Fidelity, ILX Systems, Thomson Reuters and Bank of America. In 2017, MarketWatch, owned by Dow Jones, named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish was the winner of the Top Stock Pick of the year for RealVision. Learn More
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