Agricultural product manufacturers of fertilizer and chemicals would appear to be a reasonable place to allocate some funds through the summer months in an otherwise unfriendly environment for the equity market -- provided the technical work supports such a commitment.

My near- and medium-term work both argue that Monsanto (MON) ended a major bear phase in July 2010 at 44.61 and since has carved out a constructive and very promising pattern that should continue higher towards a confrontation with key two-year resistance at 73.80 next.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.