| 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 $31.21, a 25.67
percent decline. The question is how much further will it drop?
The four-year chart shows the multi-year upside and subsequent
downside plotted on a semi-log scale which straightens the upside
price trend. Currently ADM is trading at the lower boundary of its
price channel (recurring highs and lows are parallel).
Often stocks bounce off the lower boundary to start a new upside
move. But if ADM fails to do that, it could head down to test the
major support level at $25.
Click on the blue chart to the right to see more information about
Archer-Daniels-Midland.
Related Articles:
Is Archer-Daniels-Midland Headed
to $25?
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
Posted January 9, 2007.
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