ADM breaks below 50-day moving average for the first time since January 29th
Archer-Daniels-Midland Company (ADM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, ADM ended the week -2.06% lower at 44.77 after losing $0.50 (-1.1%) today, strongly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 45.02, the stock confirmed its breakout through the prior session low after trading up to $0.39 below it intraday.
Daily Candlestick Chart (ADM as at Feb 14, 2020):
Friday's trading range has been $0.53 (1.18%), that's slightly below the last trading month's daily average range of $0.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ADM.
One bearish candlestick pattern matches today's price action, the Black Candle.
The share closed below the 50-day moving average at 45.09 for the first time since January 29th. When this moving average was crossed below the last time on January 24th, ADM lost -1.74% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 50" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Archer-Daniels-Midland. Out of 90 times, ADM closed higher 56.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.44% with an average market move of 0.96%.