Archer-Daniels-Midland Is a Tough Call

The stock of Archer-Daniels-Midland (ADM), a large corn and soybean processor, is in a period of indecision with respect to its future price direction. ADM ended a multi-year upside when it peaked at $45.04 on May 11, 2006. It then formed a symmetrical triangle price pattern making lower highs and higher lows.

A symmetrical triangle is neither a bullish or bearish formation so the chart does not fortell whether ADM will move to downside, upside or trade sideways. If the stock moves down, it has support at $35 to $36. And if it moves up, there is resistance at the previous highs.

Posted September 12, 2006.