AGRI Sector : Accumulate on weakness
March 11, 2011 Leave a comment
One would think with food prices hitting and in many cases taking out their 2008 highs the AGRI sector would be on a flyer. Sadly this is not the case, with the sector posting its lowest weekly close since October 2010. However the AGRI sector has major support at 228 down to 221, and a worst case scenario will be a temporary pullback to within this range we think.
It may take another 2 or three candles, but we think a bottom may not be far off for this sector. A number of the high volume plays in the sector will therefore be worth a look, and over the next week or two it will be interesting to see if the likes of CPF and STA see increasingly flows.