With the market rotation underway, agribusiness stocks may be ready for a bounce
This week we’re focusing on a key theme of 2026 — boring is back. The sector in question is MOO-ving in the right direction. There is also a specific stock within this sector that is making new 52-week highs and just starting to turn around. That sector is agribusiness. The ETF that tracks the largest companies involved in fertilizers, seeds, farm machinery, livestock feed, and agricultural chemicals. It gives investors that broad exposure to the full food-production value chain. That ETF also has one of my favorite tickers — MOO — the VanEck Agribusiness ETF . Glancing at this one-year daily chart you see its recent parabolic rise. The sector is already up 17% year to date and well overbought based on its RSI reading. Keep this idea on the back burner because any pullback should be seen as an opportunity to add exposure to this part of the materials sector. Why? Let’s look at it on a longer time horizon — a 10-year weekly chart. This has all the characteristics of a longer-term technical turnaround play. It checks the primary boxes on our reversal checklist: The stock has stopped going down as we have made a higher low. We have cleared major moving averages. The intermediate- and longer-term trends have broken. We have something to reverse. Now may not be the perfect time to rush in, but given its cyclicality and overall trend change the risk/reward is favorable to add to your portfolio especially on a dip. Support in the $80 to $82 range is likely to hold. What’s more interesting is looking under the hood of the ETF and its key components. Many of them are just starting to heat up and giving investors great risk/reward entry points. One of those is a Canadian agricultural company that trades on the NYSE named Nutrien. Looking at this stock on a one-year daily chart, I see one of my favorite technical patterns — the rounded bottom breakout. We see a clean breakout on a gap and run to new 52-week highs. When we back it out on a five-year weekly time frame, we get ironclad confirmation that this breakout is significant. Again — this checks all of our reversal boxes and is quite favorable over a longer time frame. The trade This is a longer-term play. Downside risk back to the $64 area is plausible and if it breaks below the key moving averages and recent uptrend then the pattern is broken and it’s time to exit. The upside reward seems far greater given the breakout on multiple time frames and the heavy rotation into the sector. There is clear MOO-mentum. Minimal upside targets based on the breakout from this formation are into the low 80’s with the potential to make a run back to its all-time highs around $110. — Jay Woods, CMT with Chase Games DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
<
