Top Agriculture Stocks to Watch: Key Takeaways
- Watch for these important support and resistance levels…
- The catalysts that spike agriculture stocks…
- The setup that’s too nice to miss…
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Many of the top traders I know stay in the game by finding stocks within one sector. The theory is that if one stock is spiking, others could follow suit. It’s called sector momentum.
So how do you find the next agriculture spiker? Create a watchlist of all the most promising penny stocks in the sector. Here’s mine (details below)…
- AgroFresh Solutions Inc. (NASDAQ: AGFS … see my analysis here)
- AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI … see my analysis here)
- AquaBounty Technologies Inc. (NASDAQ: AQB … see my analysis here)
- Art’s-Way Manufacturing Co. Inc. (NASDAQ: ARTW … see my analysis here)
- Marrone Bio Innovations Inc. (NASDAQ: MBII … see my analysis here)
- Pingtan Marine Enterprise Ltd. (NASDAQ: PME … see my analysis here)
- Arcadia Biosciences Inc. (NASDAQ: RKDA … see my analysis here)
- S&W Seed Company (NASDAQ: SANW … see my analysis here)
- 22nd Century Group Inc (NASDAQ: XXII … see my analysis here)
Table of Contents
- 1 Agriculture Stocks Overview
- 2 Background on Agriculture Stocks
- 3 Trends
- 4 My Top Agriculture Stocks Picks
- 4.1 Top Agriculture Stocks #1: AgroFresh Solutions Inc. (NASDAQ: AGFS)
- 4.2 Top Agriculture Stocks #2: AgriFORCE Growing Systems, Ltd. (NASDAQ: AGRI)
- 4.3 Top Agriculture Stocks #3: AquaBounty Technologies Inc. (NASDAQ: AQB)
- 4.4 Top Agriculture Stocks #4: Art’s-Way Manufacturing Co. Inc. (NASDAQ: ARTW)
- 4.5 Top Agriculture Stocks #5: Marrone Bio Innovations, Inc. (NASDAQ: MBII)
- 4.6 Top Agriculture Stocks #6: Pingtan Marine Enterprise Ltd. (NASDAQ: PME)
- 4.7 Top Agriculture Stocks #7: Arcadia Biosciences Inc. (NASDAQ: RKDA)
- 4.8 Top Agriculture Stocks #8: S&W Seed Company (NASDAQ: SANW)
- 4.9 Top Agriculture Stocks #9: 22nd Century Group Inc (NASDAQ: XXII)
- 5 Agriculture Stocks: The Bottom Line
Agriculture Stocks Overview
The agriculture sector includes a lot more than businesses that just sell or make food. It spans the entire industry, from pesticides and fertilizer to even technology companies. They all aim to improve efficiency and crop yield.
We don’t just plant a seed in the ground and wait for it to grow anymore. This is a huge sector with a lot of trading opportunities — if you know where to look.
Background on Agriculture Stocks
The 2020 lockdowns put a lot of pressure on this sector. Few agriculture businesses thrived during that period.
But the sector’s made a bit of a comeback. That’s what’s great about agriculture. People always need food. And as the world’s population grows, we need to find efficient ways to feed everyone.
Trends
Demand for restaurant food dropped significantly during lockdowns. It started to pick back up during the summer. Now there’s some uncertainty about what will happen this winter…
By contrast, demand for grocery store items increased during lockdowns since more people were cooking at home. No one knows what will happen next, but if you want to trade this sector, you need to understand why — and how — agriculture stocks move.
Identifying a trend is only half the battle. To stay ahead of the game, find out why the trend exists and where it might go next.
That’s enough background for now. Let’s get into the agriculture stocks on my watchlist…
My Top Agriculture Stocks Picks
I put this watchlist together so you can learn from it. Remember, these aren’t guaranteed home runs … or even trades for that matter. But I keep an eye on them. You never know when one might start to move.
Some of these stocks I might never trade. The key is figuring out how to play them if they start to move.
I usually day trade in the OTC market, but all of these are listed stocks. The patterns I use show up in both places. I just prefer the sketchier penny stocks.
If you want to learn about penny stocks, check out “The Complete Penny Stock Course”. It’s an awesome starting point. For a more hands-on crash course, try my 30-Day Bootcamp. (BTW, you get “The Complete Penny Stock Course” book as a bonus with the 30-Day Bootcamp.)
Both are great resources to start you on the right path to self-sufficient trading.
OK, let’s check out the agriculture stocks watchlist…
Top Agriculture Stocks #1: AgroFresh Solutions Inc. (NASDAQ: AGFS)
Here are just two things I look for in stocks — a history of spiking and the potential for a catalyst.
Past spikers can spike again. But they need a reason to push higher. This company has a bit of both.
The chart shows a lot of resistance at the $3 level. It managed to peak above it in May 2020, but it fell back down in June.
Support and resistance lines can tell us where more buyers and sellers might gather. They usually happen at whole-dollar levels because those numbers are psychologically significant.
With this stock, I wouldn’t think to go long until it shows it can peak back above $3 with a strong catalyst.
This company creates technologies that help preserve food and keep it fresher longer. The human population grows at an exponential rate. A technological breakthrough in preservation could be a huge moneymaker.
There are no promises with this one, but I’ll keep it on my watchlist.
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Top Agriculture Stocks #2: AgriFORCE Growing Systems, Ltd. (NASDAQ: AGRI)
This stock looks to be all bad, but there are some points of interest.
It’s a recent IPO, so it’s only been trading for a couple of months. Since the offering, the price has fallen down into penny stock land.
If you look at the chart, you can see it topped at $4 at the beginning of August. That’s a point of resistance. I’d wait to trade it until volume increases, and it starts climbing back toward that level.
The company dedicates itself to automating and restructuring agriculture. They claim their system can grow fresh produce in any climate because they use specially designed facilities to keep it safe from the elements. It sounds like a good idea to me.
Only so much of the earth’s soil is farmable. So to continue to feed a growing population, we’ll have to find ways to grow in harsh climates or without soil.
I’d watch for newsletters that talk about new partnerships or maybe contracts to build their facilities. That sort of news could have legs.
Top Agriculture Stocks #3: AquaBounty Technologies Inc. (NASDAQ: AQB)
This is an exciting chart. We see it has a history of breaking through resistance and spiking.
In December, it ripped through resistance at $5 and peaked past $11. Then it settled down and made a choppy comeback. It ultimately fell back to under $5.
This company serves the growing demand for fish and seafood. It raises fish on land in tanks. Another play on the theme of growing food in different climates…
It has the resistance set up at $5, but there might be a lot of bag holders from the choppy run to $12. I’ll keep this one on my list, but I want to see it set up better before I make a move.
Top Agriculture Stocks #4: Art’s-Way Manufacturing Co. Inc. (NASDAQ: ARTW)
Look at this chart. Right away you should see resistance at $4.
It peaked above that level in February but fell back down. Then it double-topped in July. Both days had big volume.
Since then, it’s held up pretty well. We could see a push past $4 if the right news came along…
This company is a manufacturer of tools and farming equipment. That’s big business. A lot of the farming equipment these days is high tech and expensive. It will only continue that way as technology improves.
As long as people need food, they’ll need tools to farm food. An announcement about new contracts with big farms should make this stock move big.
Top Agriculture Stocks #5: Marrone Bio Innovations, Inc. (NASDAQ: MBII)
Another beautiful past spiker. It spiked from the $1 range to just below $3 back in January and February.
There looks like a good amount of resistance at the $2–$3 level. So I wouldn’t get excited until it bounces around in there.
This company works to protect crop health by developing new biological products. Pesticides and crop health are a big deal in farming and agriculture. Plants growing out in the elements are exposed to insects and bad weather.
Any biological developments could be big news and big business for this past runner. I’ll keep my eyes on it.
Top Agriculture Stocks #6: Pingtan Marine Enterprise Ltd. (NASDAQ: PME)
This stock ran from $1 to $2.50 in September and October 2020. Now it’s under $1 again.
It just goes to show that you can’t trust penny stocks. For tips on trading these sketchy runners, check out my “Spikeability” DVD.
I wouldn’t think about going long on this one until it moves up past $1. Remember, you don’t need to be first to the move. React, never try to predict.
This company engages in ocean fishing. Demand for fish is high and growing. We already talked about a stock that farms fish on land. I included PME on my watchlist because it gives me a better idea of the fishing sector as a whole.
With this stock, I look for any price movement and volume with a meaningful press release.
Top Agriculture Stocks #7: Arcadia Biosciences Inc. (NASDAQ: RKDA)
Now, THIS is a beautiful chart. It’s straight out of my 7-step framework.
See how it rips past $3.50? The run didn’t last long. Traders had to get in and out quickly with safe profits. But it went all the way to $6.
That $3.50 level was key, but it looks like $3 is a bigger recent resistance point. I’ll watch for activity around there with more volume.
This company develops scientific approaches to improving crop yield and value. A more nutritious product should be more valuable.
Any scientific breakthroughs and contractual agreements could revive this runner.
Top Agriculture Stocks #8: S&W Seed Company (NASDAQ: SANW)
Another stock with resistance at $4. That seems to be the theme with a lot of these agriculture plays. It ran a bit in the past, but it’s been a bit choppy lately.
A push past $4 with enough volume could be explosive.
This company sells germplasm to farmers to help produce higher yields. I’m not exactly sure what germplasm is … But if it produces more crops, it could be a great product.
I’m looking for news of product improvements or contracts with new farms. Those catalysts could push this stock past the breakout level.
Top Agriculture Stocks #9: 22nd Century Group Inc (NASDAQ: XXII)
The last stock on this list has a pretty large resistance level at $5. And it just dipped but was able to hold its gains.
This is a pretty good-looking chart. Scroll back up and look at AQB before it broke out…
I’m not saying it’s a done deal. These things fail all the time. But you must learn to recognize the patterns.
This company chemically engineers and breeds plants. It can increase or decrease the level of nicotine and cannabinoids in crops.
Tobacco hasn’t been the biggest catalyst lately, but weed stocks went on a run just recently. We could see a revival in that sector take this stock higher.
I’d look for a catalyst that boasts new contracts or technological developments.
Agriculture Stocks: The Bottom Line
That’s it for my top agriculture stocks to watch.
Remember, these are just on my watchlist. I might not trade any of them. It all depends on whether they fit my patterns.
I’ve been trading for 20+ years and teaching for over a decade. My top students and I have learned that the stock market is a dangerous place. So sometimes no trade is the best trade.
If you’d like to apply to become my next student, check out my Trading Challenge. I don’t accept everybody. You’ll have to apply and prove you’re willing to put in the work.
You need to study and learn to recognize good trades … and the right times to trade. Wait to trade these top potential agriculture spikers until the setup’s perfect. Get in safely and get out safely.
And always remember rule #1: cut your losses quickly.
Which agriculture stocks are on your watchlist? Do we have some of the same tickers? Let me know in the comments. I love to hear from all my readers.
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