The Noose Tightens on Monsanto
Monsanto (MON) could be poised for a volatility expansion because BandWidth has narrowed over the last few weeks and volatility has contracted signficantly. The BandWidth indicator tells us that the difference between the upper and lower Bollinger Bands is less than 4%, which is relatively low. John Bollinger theorized that a volatility expansion follows such a contraction, but this contraction does not give us a directional bias. The chart sports a diamond consolidation over the last few months and chartists can watch this consolidation for a breakout to get a jump on the next directional move.

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