ADM finds buyers at key support level
Archer-Daniels-Midland Company (ADM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
ADM finished the month 7.34% higher at 42.83 after losing $0.53 (-1.22%) today on high volume, strongly underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ADM as at Jul 31, 2020):
Friday's trading range has been $1.55 (3.58%), that's far above the last trading month's daily average range of $0.90. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ADM.
After trading down to 42.03 earlier during the day, Archer-Daniels-Midland bounced off the key technical support level at 42.70 (S1). The failure to close below the support could increase that levels importance as support going forward. After having been unable to move above 43.60 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 43.58. The last time this happened on July 22nd, ADM actually gained 2.67% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 43.60 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Archer-Daniels-Midland. Out of 394 times, ADM closed higher 58.38% 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 54.06% with an average market move of 0.58%.