Archer Daniels Midland Closing in to Resistance

Published on Tuesday, 17 August 2010 19:04 Written by Danny Miller

New York, August 17th (TradersHuddle.com) - Shares of Archer Daniels Midland Company (NYSE:ADM) are trading very close to calculated resistance at $30.98 with the current price action closing at just $30.78 placing the stock near levels that make it difficult to buy.

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 $26.50 and by the resistance level at $30.98, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Archer Daniels Midland , as the stock is well above support, however, as the stock pulls back towards $26.50 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $30.98 then traders will get an opportunity to enter Archer Daniels Midland stock by establishing a position as the stock moves to a higher range.