Monsanto Explodes To The Upside After Abandoning Syngenta Bid

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Monsanto Company MON shares were trading sharply higher by $7 at $96.42 in Wednesday's session. The Street is applauding the company's decision to abandon its bid for Syngenta AG (ADR) SYT. Instead, the company may increase its share repurchase program.

After making a new low for the recent down move ($89.34) and closing just above it ($89.42), the issue was trading at the $89.70 level just before it was halted pending news. When the issue reopened, it leaped to $95 and briefly retreated to $93.36 before resuming its rally.

The ensuing rally exceeded Monday ($97.16) and Tuesday ($96.74) highs, reaching $97.64 before pulling back under $97.

Today's price action is taking place on much heavier than average volume. So far, 8.6 million shares have changed hands compared to its 20-day average of only 3.18 million with just under three hours remaining in the session.