Archer Daniels Midland Breaking Out?

Published on Monday, 26 July 2010 06:44 Written by Danny Miller

New York, July 26th (TradersHuddle.com) - Shares of Archer Daniels Midland Company (NYSE:ADM) closed the trading session at $27.63 just above calculated resistance at $27.50 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

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 stock was trading in a well defined range with support at $25.02 and resistance at $27.50, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Archer Daniels Midland's stock is still near the broken resistance level, traders will be focusing on $27.50 to see if the stock holds the breakout without rolling over.