With Archer-Daniels-Midland ( ADM) trading $20 higher than our long-ago price target of $63 a fresh review of the charts of this ag-related name is overdue.
In the updated daily bar chart of ADM, below, we can see that the shares made a saucer bottom from June. There was an upside breakout and a retest in January before the latest climb higher. Prices are trading above the rising moving averages.
The trading volume has been increasing. The On-Balance-Volume (OBV) line is rising. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In the weekly Japanese candlestick chart of ADM, below, we see a bullish setup. Prices are in a longer-term uptrend and trade above the rising 40-week moving average line.
The weekly OBV line has been strong the past two years but might be stalling a little now. The MACD oscillator is bullish. There is an upper shadow above $85 but it does not qualify as a reversal pattern.
In this long-term ADM chart, below, we can see that the shares have broken out on the upside from a six-year consolidation pattern. The breakout occured in early 2021.
In this daily Point and Figure chart of ADM, below, we can see that prices reached and exceeded an upside price target of $70.
In this weekly Point and Figure chart of ADM, below, we used a five-box reversal filter to get a $106 price target.
In this second weekly Point and Figure chart of ADM, below, we used close-only price data along with a five-box reversal filter. Here it shows us a $134 price objective.
Bottom-line strategy: We can add ADM to a growing list of bullish names in the agricultural field -- The Mosaic Company ( MOS) , CF Industries ( CF) , Deere ( DE) , Bunge Ltd. ( BG) to name a few that we have covered here on Real Money. If you are long ADM -- great. Risk to $72 now. If you want to go long ADM you could wait for a dip to $80 and then also risk to $72. Our first target is $106.
