JO “reversed its role once the price broke above in early June. Active traders will expect this role reversal to continue and many will likely look to take a position as close to the trendline as possible in an attempt to maximize their risk/reward. Stop-loss orders will likely be placed below either the dotted trendline or the nearby 200-day moving average depending on risk tolerance,” according to Investopedia.
Related: Coffee ETN Pullback Could Spell Opportunity
The iPath Bloomberg Sugar Subindex Total Return ETN (NYSEArca: SGG) and the Teucrium Sugar Fund (NYSEArca: CANE) are other tactical, but sometimes volatile offerings in the agriculture commodities space.
SGG’s “recent close near the trendline is creating an extremely lucrative risk-to-reward setup and many will likely use it as a guide for placing their buy and stop-loss orders,” adds Investopedia.
For more news and strategy on the Agriculture market, visit our Agriculture category.
PowerShares DB Agriculture Fund
