Invested Central Chart of the Day 12.1.09

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ADM is a $19.8 billion consumer goods company that procures, transports, stores, processes, and merchandises agricultural commodities and products in the United States and internationally. ADM has been trending higher since late April. The recent pullback has been to the 50 day SMA, but the price remains well above the longer-term uptrend line. The MACD has been falling and is now approaching support near the centerline. A price reversal occurred on Monday after the 50 day SMA was pierced intraday. The close back above the 50 day SMA with the increasing volume suggests a near-term bottom may have printed on Monday. Look for an initial test of gap resistance near $31.40. Once above that level, a clearer path to $32.80 will be established. To the downside, Monday's low of $30.03 should hold as support if a reversal is truly in place.

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Tags:

• technical analysis
• daytrading
• stocks
• stock charts
• stock market
• financial
• trendlines
• investing
• ADM