Increased demand for agriculture products across the globe is sending the prices of farming-related assets higher. As you can see from the chart of PowerShares Global Agriculture ETF (PAGG ), a popular fund used by traders to track farming-related activities, recent price action has surpassed a key area of resistance and momentum is now clearly in the upward direction. The breakout. shown by the black circle, is a clear technical buy sign and many traders will hold a bullish outlook until the price closes below the trendline or nearby moving averages. (For more, see: Choosing an Agriculture ETF .)

Fertile Ground?

One segment of the market that is capturing the attention of commodity traders is the agriculture chemicals industry. Bullish price patterns appearing on charts of major players along with strong demand for agro-chemicals, fertilizer and increased farming expenditures have been a boon for the industry.

No analysis of agriculture chemicals is complete without a look at Monsanto Co. (MON ). The company trades with a market capitalization of approximately $60 billion and is one of the most talked-about companies in the public markets. As you can see from the chart below, the price has recently broken out of an ascending triangle pattern. The move above $122.43 is a technical buy sign and many traders will use the bullish crossover between the MACD and its signal line (shown by the black circle) as confirmation of a move higher. Traders will likely protect their long positions by placing a stop-loss order below the long-term support of the 200-day moving average (red line), which is currently trading at $116.73. (For more, see: Triangles: A Study of Continuation Patterns .)

Time to Invest in Fertilizer

Another set of strongly positioned agriculture-chemical stocks is Potash Corp. of Saskatchewan, Inc. (POT ) and The Mosaic Company (MOS ). These two companies are global leaders in the mining, production and sale of potash-based fertilizers. Taking a look at the chart of POT below, you can see that it is nearing the resistance of the previous high of $37.45. Moves beyond this level will likely trigger a series of buy-stop orders. The recent bullish crossover between the 50-day moving average and the 200-day moving average signals the beginning of a long-term uptrend so many position traders will likely look to maximize the potential risk/reward of the trade by placing their stop-loss orders below the 200-day moving average ($34.76). Giving positions more room to maneuver will reduce the likelihood of being whipsawed out of a position prior to a surge higher. (For more, see: A Huge Opportunity in Fertilizer Stocks .)

Mosaic Trending Higher

Taking a look at the chart of Mosaic Co, you can see that the bulls have already sent the price above the resistance of high from June 2014. Traders will use this bullish chart pattern to anticipate a similar move in POT. The recent bullish crossover between the 50-day and 200-day moving average is also signaling the start of a long-term uptrend so many traders may look to set wide stop-losses to limit the chances to being taken out of a position early.