Is $BG in a Squeeze?- September 14, 2023


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This is Scott with your Chart of the Day. I want to take a look at Bunge ( NYSE: BG ). Bunge ( NYSE: BG ) is in the agriculture sector.

As you can see, if I zoom out here, it is in a nice strong uptrend that started at the end of July. We are above all the major moving averages here, but we are still under the all-time high from back here in April, back here around April of 2022, that’s a pretty clear level of resistance there.

But I’m interested to know if Bunge ( NYSE: BG ) wants to retest those highs. That is about 12.5 percent from where it is right now. If I zoom in here to the chart again, you can see that Bunge ( NYSE: BG ) is in a nice tight range of consolidation. We have resistance right around that 116.00 level, and we have support right down here at around 110.00.

Now, I don’t have the Bollinger Bands on this chart right now. But if I put on Bollinger Bands, like that, it’s magic. You can see that Bunge ( NYSE: BG ) is in a bit of, what Dan Fitzpatrick calls, a squeeze. A squeeze is when you have tight price action and the Bollinger Bands get closer and closer together.

You typically want to see this at least under 5 percent, and that is where Bunge ( NYSE: BG ) is. And so we want to look for a break out of that squeeze, coming on higher than average volume. You can see when it breaks above, like it did back here in June and July, when it does get above and stay above, and do it on good volume, it can nicely track up that 8-day exponential period moving average.

That is what I would look for here on Bunge ( NYSE: BG ). Maybe have an alert on this stock right around that 116.00 level, maybe just below. And look for a strong move through that level, coming on higher than average volume.

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