Trading Idea - Is Archer Daniels Midland close to Support?

Published on Tuesday, 02 March 2010 19:16 Written by Christopher Lynn

New York, March 2nd (TradersHuddle.com) - Shares of Archer Daniels Midland Company (NYSE:ADM) are trading very close to calculated support at $29.25 with current price action closing at just $29.85 places the stock price near levels where traders will start paying attention.

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.

Archer Daniels Midland's current stock range is defined by current calculated support defined at $29.25 and by the resistance level at $31.80, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Archer Daniels Midland's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $31.80 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.