Back in November, shares of chemical stock Neogen Corporation (NASDAQ:NEOG) $16.41 +4.5% put some money in a bull's pocket as the stock broke above the $15 level and surged to as high as $25.21 over the course of a couple of weeks before reporting earnings that blew analyst's estimates out of the proverbial corn field.
Neogen Corporation Chart - Daily Interval
Shares of NEOG might be ready for a repeat performance of last fall as the stock makes a meaningful move higher and bucks the broader market trend as crop planting season in the U.S. begins. The company manufactures a full line of diverse products dedicated to food an animal safety, which are marketed to food producers and processors to aid in the detection of foodborne bacteria, natural toxins, food allergens, genetic modifications, drug residues, plant disease infections and levels of general sanitation.
While many cheer biotech company's for breakthrough technologies that help aid humans, cheer can also be found for those company's that help aid crops and increase a farmer's yield. Nothing like a good juicy ear of corn on the 4th of July!
The point and figure chart of NEOG is not nearly as bullish looking as that found in the bar chart. Resistance may be formidable at the $18-$18.50 level, but a stop placed just under the $15.40 level may have a bull with a firecracker in his/her pocket later this summer as seasonality has sales picking up again.