Archer Daniels Midland Company manufactures and sells protein meal,
vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other
value-added food and feed ingredients; and processes oilseeds, corn,
wheat, cocoa and other agricultural commodities. The company’s Oilseeds
Processing segment originates, merchandises, crushes, and processes
oilseeds, such as soybeans and soft seeds into vegetable oils and
protein meals. Its products include oilseeds products; crude vegetable
and salad oils; margarine, shortening, and other food products;
partially refined oils; oilseed protein meals; cottonseed flour; and
cotton cellulose pulp. Its Corn Processing segment converts corn into
sweeteners, starches, and bio products. The company’s Agricultural
Services segment engages in buying, storing, cleaning, and transporting
agricultural commodities, such as oilseeds, corn, wheat, milo, oats,
rice, and barley; and reselling those commodities primarily as food and
feed ingredients.
To review Archer’s stock, please take a look at the 10-month chart of
ADM (Archer Daniels Midland Company) below with my added notations:
Archer’s stock had been trading sideways for the last several weeks.
Over that period of time, ADM had formed a clear resistance level at $42
(blue). In addition, the stock also created a strong level of support
at $40 (green). That rectangle formation on ADM is very helpful in
trading it because at some point the stock would have to break one of
the two levels the pattern has created. Yesterday the stock finally
broke the $42 level and should be moving higher from here.
The Tale of the Tape: ADM recently broke out of its
rectangle pattern. A pullback to $42 would provide an opportunity to get
long on the stock. However, a break back below $42 would negate the
forecast for a move higher.
Please share this article
+stock+chart.png)
Click Here to Listen to the Audio