ARCHER-DANIELS-MIDLAND CO is setting up nicely for a breakout.

A possible breakout setup was detected on ARCHER-DANIELS-MIDLAND CO (NYSE:ADM) by our stockscreener. A breakout pattern is formed when a stock consolidates after a strong rise up. We note that this pattern is detected purely based on technical analysis and whether the breakout actually materializes remains to be seen. It could be interesting to keep an eye on NYSE:ADM.

What is the technical picture of NYSE:ADM telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, ADM scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, ADM has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, ADM did better than 96% of all other stocks. We also observe that the gains produced by ADM over the past year are nicely spread over this period.
• ADM is part of the Food Products industry. There are 101 other stocks in this industry. ADM outperforms 95% of them.
• ADM is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
• ADM is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:ADM currently has a 9 as setup rating:

ADM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 96.91. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 93.07, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Trading setups like NYSE:ADM

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NYSE:ADM and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.