"HISTORY"
Top 3 agriculture stocks for the week of May 20th
RiceBran Technologies (RIBT)
Market Cap $33.91 Million USD
A very popular stock among my readers and on Twitter, and featured for the first time in last week’s agriculture sector roundup. In that article, I mentioned that RIBT is showing a very promising reversal pattern. Well, things are developing really well.
News wise, RiceBran announced the initiation of a significant capacity expansion of the company’s MGI Grain Incorporated (MGI) facility in East Grand Forks, Minnesota. The expansion is expected to double the capacity of the pearling mill, enabling RiceBran to meet growing demand for North American-sourced, grain-based ingredients and with a minimal capital investment and a limited increase in labor.
The project will replace one of the mill’s main grain de-hullers with a new de-huller/pearler; more than doubling the plant’s production capacity. In addition to the new huller, MGI will support increased throughput and quality with the addition of a color sorter, as well as enhancements to the mill’s grain receiving, cleaning and conveyance systems.
“These upgrades will allow RiceBran to finally leverage MGI’s true potential expanding volume and process flexibility while enhancing product quality,” said MGI business lead Kevin Pray. “This will allow us to double the capacity of the pearling mill within the same building footprint, giving us the ability to meet increasing customer demands while navigating a tight labor market, with only a modest capital investment.”
TradingView Chart
Boom. Breakout. The resistance we were watching got taken out, and Thursday saw price action pullback to retest. As long as the stock remains above $0.63, more upside is coming. We should see buyers step in on this retest.
For all you breakout traders, what is really important is not just the size of the green candle, but also the volume on the breakout. I notified you all last week about the big volume coming into this stock. Well take a look at volume on the day of the breakout on May 18th 2022:
Over 12 million shares on the breakout. Wow. This is perhaps one of the most, if not the most, exciting looking agriculture set up on the markets. While everything is red, RiceBran Technologies had a fantastic week even confirming a major breakout.
Where next? If this support holds, we expect further upside to $0.90, and there is some interim resistance at $0.8250.
