Cramer Slaps a Sell on Monsanto (MON), Citing Bearish Technical Setup

Shares of Monsanto (NYSE: MON) are trading slightly lower in this morning's pre-market session following a Sell recommendation on Jim Cramer's Mad Money last night. The stock is currently down 1% to $81.50.

Taking a technical look at the seed company, Cramer said he is concerned that his previous outlook for Monsanto might have been "too rosy". One technician pointed out to Cramer that the stock recently sold off on very heavy volume, but on the bounce, the volume was much lighter. Even more, the analyst believes that Monsanto's chart is indicating a classic head-and-shoulders top and sees the stock heading to around $70.

Another technical analyst proposed that the entire surge in commodities recently has been "false". Given this assumption, the analyst told Cramer that Monsanto could get cut in half.

Despite the sell call, which should be bearish for the entire group, Monsanto is one of the few ag-related stocks selling off this morning. Elsewhere in the sector: Potash (NYSE: POT) up 1.2%, Mosaic up 1.6% and Agrium (NYSE: AGU) is up 1.2%.

Also, as a great measure of performance within this heavily traded group, check out the Market Vectors Agribusiness ETF (NYSE: MOO).

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