Is $ADM the next $SAVE? š¤
Happy Belated New Year! I been gone for a minute nowIām back with the jump off. Finally getting back into the swing of things (eh, see what I did there?). While scanning through the charts I came upon $ADM so letās take a look at this lil beautyā¦
Archer Daniels Midland ($ADM) is an agricultural giant. They are one of the biggest companies that trade and process agriculture goods (crops, grains, seeds) into food, fuel, and animal feed. Itās one of four companies (known as the ABCDs) who handle 70% of global food trade.
But recently its stock took a dive as US prosecutors began investigating the accounting books of its nutritional information reporting department.
But letās breakdown the chart and see whatās under the hoodā¦
As you can see from the chart below, news of the the investigation caused the stock price to plummet. But, like a Transformer, thereās more than meets the eye hereā¦
Support
I found this stock using my Support Scan ā it has found a nice bottom and seems to be holding steady. And even looking back to the drop, we can see a previous line of Support to keep an eye on as well.
RSI
The stock is under 30 RSI which we know, major companiesās stocks donāt stay down there for long.
MACD
The Histogram shows upward momentum nearly the positive side of the line.
RESISTANCE
Even our First Target zone of around $57 means a nearly 8% gain on that Target alone, thatās not even looking at the gap it can fillā¦
THE GAP
Due to the drastic drop in price, this leaves a large gap to fill, which as we know, the rise will take more time than the fall, but it means lots of potential gains to be had if and when it returns to its previous norm near the 200 MA price of $73.22 which would equate to around 39% gains.
200 MA
The price is under the stockās 200 Day Moving Average (well under it in fact) which is a Bread & Butter trade. Price tends to act like a magnet and wants to return to its 200 MA whether itās above or below it, and lucky for us, this one is below it.
All of this reminded me of another chart from last yearā¦
And we know how that turned outā¦ š¤
Some Half-Assed Internet Research š§
Doing a quick Google News search shows that $ADM shows up on this recent list of undervalued stocksā¦.
It also has promising numbers from analysts on TipRanksā¦
Anyways, thatās all Iāve got for now. Iām gonna slowly build a position because $ADM seems like too big of a company not to get in at these low low prices. Either way itāll be fun just to see what happens.
If you had fun reading this post, I always appreciate a complimentary cup of coffee from followers wanting to show their support, especially in these ridiculously inflated times. Enjoy the rest of your hump day, humans.
Trade long and prosper!
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