The world has changed a lot since Jan. 31, the last time we looked at Archer-Daniels-Midland (ADM) . Before the world really learned about Covid-19 we wrote that, "Traders could long ADM on strength above $47, add above $49 and then risk below $42. The low $60's is our target."
With hindsight we can see that the shares did reach our suggested buy stop before the February-March decline. Prices are now above $47 so this is a good time to review some updated charts.
In the daily bar chart of ADM, below, we can see that the shares have been in a strong uptrend from the late March low. Prices are trading above the rising 50-day moving average line and the rising 200-day moving average line. A golden cross buy signal can be seen at the beginning of August as the 50-day line crossed above the slower-to-react 200-day line.
The On-Balance-Volume (OBV) line has been strong and has broken above its December 2019 peak and tells us that buyers of ADM have been more aggressive for months. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in bullish territory and has turned upward to a fresh outright go long message.