ANDE Andersons Agriculture Stock Setting Up For 50 Dollar Price Target

Today ANDE – Andersons Inc. found its way into my portfolio. I chose ANDE for starters as it is a rather slow mover. The time will come to ramp up position sizes and trade more aggressive stocks. No need to rush things after a trading break.

ANDE looks interesting as it is part of the ‘Agriculture Investment Theme’ which is gaining traction. I mentioned ANDE along with corn and coffee in the past. As mentioned in the former post ANDE does have overhead resistance but as it is not in the immediate past it shouldn’t be too much of a problem. That being said volume needs to kick in soon in order for momentum to develop.

The potential 50 US$ price target for ANDE is much easier to identify on the weekly chart.

The target area is highlighted. Here’s a list of things I like about the chart:

* The price target is ‘only’ 20% away. If the stock starts to move the price area is more likely to act as a strong magnet.
* 50 USD is a round number. Stocks like to touch round numbers. The logical target for an uptrending 40 dollar stock is 50 US$
* Price is trading above the weekly MA 30.
* The weekly moving average 30 was flat and is now starting to move to the upside.
* Bullish ascending triangle chart pattern.
* Thrusting move into the triangle. From a technically perspective a break out is more likely to resume the trend leading into the pattern. The next thrusting move therefore should be up.
* Stop Loss is not too far away. Judging from the pattern pressure the stock should show its hand pretty soon. If I get stopped out losses will be small and I will probably know pretty soon.
* The Ag Sector as a whole is moving up. We therefore have a set-up where a ‘rising tide raises all ships’.