ADM closes within previous day's range
Archer-Daniels-Midland Company (ADM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ADM finished Wednesday at 47.66 gaining $0.19 (0.4%) on high volume, outperforming the S&P 500 (-0.46%). Today's close at 47.66 marks the highest recorded closing price since November 13, 2018. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ADM as at Sep 16, 2020):
Wednesday's trading range has been $0.68 (1.43%), that's slightly below the last trading month's daily average range of $0.74. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ADM.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on September 10th, ADM actually gained 1.89% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Archer-Daniels-Midland. Out of 545 times, ADM closed higher 54.50% 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 56.15% with an average market move of 0.41%.