ADM dominated by bulls lifting the market higher throughout the day
Archer-Daniels-Midland Company (ADM) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ADM finished Thursday at 34.46 gaining $1.76 (5.38%) on low volume, underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 34.03, the stock confirmed its breakout through the previous session high after trading up to $0.76 above it intraday.
Daily Candlestick Chart (ADM as at Mar 26, 2020):
Thursday's trading range has been $1.96 (5.92%), that's slightly below the last trading month's daily average range of $2.18. 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 lower than usual for ADM.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, ADM gained 1.18% on the following trading day.
Prices are trading close to the key technical resistance level at 35.00 (R1).
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could accelerate should prices move above the close-by swing high at 35.00 where further buy stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Archer-Daniels-Midland. Out of 158 times, ADM closed higher 54.43% 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 eight trading days, showing a win rate of 56.33% with an average market move of 0.16%.