Is Archer-Daniels-Midland Headed to $25?

There is no doubt that Archer-Daniels-Midland (ADM), the large grain processor and ethanol producer headquartered in Decatur, Illinois, is on the price downside. Since it peaked on May 11, 2006 the stock has declined from $44.91 to $32.70, a 27.22 percent decline. The question is how much further will it drop?

The two-year chart shows the multi-year upside and subsequent downside plus the major support level at $25. Whether ADM will fall to $25 is not known but the chart pattern suggests that it could.

Related Article:

Archer-Daniels-Midland Is a Tough Call
Archer-Daniels-Midland is Overpriced
Archer-Daniels-Midland Morphs Into a Momentum Stock
Archer-Daniels-Midland Up on Biofuels Prospects
Price Patterns - Support Levels May Constrain Price Downsides

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Posted November 29, 2006.

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