2 Interesting Analogs: (MON) & (ALLT)

I am a fan of analogs and today I will share 2 interesting analogs; one short and one long.

Starting with the short trade, Monsanto Co. (MON) completed a 6-months possible H&S Top with a neckline at 97.05. It has closed down at 96.97 triggering a target of 85. Looking back to Oct , 2008 you can see on the second chart that a bigger H&S Top occurred with the same neckline at 97 which broke down resulting in a 50% decline.

monsanto, mon, monsanto act, agriculture

MON Daily

monsanto, monsanto act, MON, agriculture

MON Weekly

Allot Communications (ALLT) has completed a 3-months double bottom formation but a clean breakout from the 13.60 line is yet to occur. Looking back to October 2011, you will see that Allt formed a similar although much cleaner double bottom pattern that also broke out from the same neckline at 13.60 and resulted in long rally to over $29!

ALLT, allot communications

ALLT Daily

Will history repeat itself? We shall see 🙂


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