How to Play Archer Daniels Midland

Published on Thursday, 18 February 2010 08:37 Written by Christopher Lynn

New York, Feb 18^th (TradersHuddle.com) - Shares of Archer Daniels Midland Company (NYSE:ADM) closed the trading session at $29.88 near its 50 day and 200 day moving averages currently set at $30.659 and $29.2358 respectively. Archer Daniels Midland's price action is above the 200 day moving average but below its 50 day moving average, signaling a possible break out.

Archer Daniels Midland Company (NYSE:ADM) procures, transports, stores, processes, and merchandises agricultural commodities and products. The Company processes oilseeds, corn, milo, oats, barley, peanuts, and wheat.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $50.75 and calculated resistance at $55.26. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

A tiered approach to enter the stock, appears to be the best way to maximize possible movements from the stock, as traders could enter Archer Daniels Midland with a small position and wait for the stock to break out above the 50 day moving average at $30.659, where traders could add to their position as momentum builds with the breakout. The flip side will be if support being referenced at the 200 day moving average set at $29.2358 breaks it could mean further downside in the horizon for Archer Daniels Midland .