Sell Limit On Monsanto Shares Following Disappointing Q3 Earnings Release

On Wednesday (29/6), the Monsanto Co. revealed its earnings report for the third quarter of fiscal year 2016. The company‘s revenue for Q3 came in at $4.19 billion, slumping 9.3% from a figure of $4.58 billion, in the same quarter last year.

The adjusted EPS was reported at $2.17, falling short of the Consensus Estimate by a whopping $0.23. Lower farmer expenses and weak agricultural commodity prices contributed to Monsanto’s lower-than expected earnings report.

On the hourly chart, the price movement is above the parabolic SAR, indicating that buying positions are still going strong. Yet, ADX (14) continues to plunge and is currently at 34.6362, suggesting a weakening bullish trend. The stock is anticipated to move up slightly to 103.71 before dipping back.

Trade suggestion

Sell limit at 103.71, Take profit at 103.30, Stop loss at 103.84

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