Was Ingredion Crazy to Drop Corn From It’s Name?

The rise in Corn prices has been one of the major themes of the year. Yet one company, Ingredion, $INGR, did what could be considered the unthinkable in that environment. They changed their name to Ingredion from Corn Products on June 4th. A fatal blow? Not really. Look at the charts.

Ingredion, $INGR, Daily

From a low on July 17 at 45.30 the stock has risen to over 52 and is now making a bull flag and an ascending triangle with tops at 53 and targets on a breakout higher to 56 and 60.70. The bullish Relative strength Index (RSI) and positive Moving Average Convergence Divergence indicator (MACD) both support a further move higher. But it does not end there. The weekly chart exhibits the same bull flag but adds upside reinforcement from a MACD that is crossing to positive, and a Measured Move to 67.80 from the higher low. And the non-time dependent 3-box reversal Point and Figure chart, PnF, shown below, carries a bullish price objective of 68. Perhaps the move is just what was needed.

Ingredion, $INGR, PnF

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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