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Archer-Daniels-Midland Company (ADM)

ADM stock forecast: buy or sell

Close on Oct 23rd, 2020
$51.87 +0.37%
3 months performance
24.10%
Published: October 24th, 2020 - 4.13pm EDT

ADM stock outlook

  • Archer-Daniels-Midland only moved a 0.37% after reaching all-time highs yesterday
  • Archer-Daniels-Midland is presenting its earnings report on Thursday next week
  • Archer-Daniels-Midland Company procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally.

Important note:
The viewpoints contained in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the individual situations of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for education reasons only

ADM stock charts

Should I buy Archer-Daniels-Midland stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $ADM stock a buy?

Currently, Archer-Daniels-Midland stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $ADM in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

Should I sell Archer-Daniels-Midland stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies prevent us from making rash decisions based on our moods or the noise that surrounds the market. We like very simple strategies to guide us on when is a good time to sell a stock. Be aware that these strategies should not be used for shorting $ADM stock

As a golden rule, you must never hold an operation that produces losses greater than those expected upon purchase. The timing to sell shares must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Archer-Daniels-Midland stock?

In the current situation of Archer-Daniels-Midland there is not any eligible sell setup, so Archer-Daniels-Midland stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell Archer-Daniels-Midland stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one rating was published for Archer-Daniels-Midland

Archer-Daniels-Midland ratings

Brokerage firmRating
Oct 19th, 2020
JPMorgan Chase & Co. NeutralBuy

Technical analysis

Archer-Daniels-Midland stock started an uptrend in early July, and gained an amazing 39.29%. The price shows rising highs and lows, and along the way provided very few buying opportunities for those who wanted to trade in. Latest pullback was in late September, when price bounced at $44.58. On October 8, Archer-Daniels-Midland broke out above its last top ($48.56) giving a good buying opportunity

$ADM at new Highs

Yesterday, Archer-Daniels-Midland marked all-time highs (ATH) again at $52.05. Stock cracked new all-time highs 5 times in the last 2 weeks

SMAs overview

Moving averages are simple indicators for investors to gauge momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

ADM SMAs chart

Supports and resistances

Market investors use support and resistance levels to find price points in the stock price action that may act as obstacles, containing the price of a stock to move up or down. A support level is a level where the price tends to stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until finding another support level. On the other hand, a resistance level is where the price may find resistance as it rises. Again, this means that the price is more liable to "bounce off" at this level, and if it finally crosses this level, the price will climb more easily until it finds the next resistance

Price is at highs and there are not upper resistances.

The current supports are:

  • S1: $48.65 (-6.21% below)
  • S2: $48.56 (-6.38% below)
  • S3: $47.75 (-7.94% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. Basically, the Bollinger Bands are bands that run around a centralmoving average, ranging the distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell point, as price can trade in these levels for many days and weeks

    ADM RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. Its objective is to map the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves in a range from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    Relative strength (RSI) climbed over the 70 level yesterday, marking a reading of 74.62. The fact that the Relative Strength Indicator (RSI) value is above 70 does not in any way imply a sell signal, as stocks can rise during several weeks being above 70

    ADM RSI chart

    Earnings and financials

    ADM ($ADM) is hosting the earnings call on Thursday next week. Market predicts a per-share earnings of $0.69, compared to previous quarter that made $0.85.

    In late July, Archer-Daniels-Midland Company ($ADM) reported EPS for FQ2 that strongly improved analysts' expectations. Quarterly EPS was $0.85 per share from an estimated $0.51. This Q2 report means an earnings surprise of 66.67%.

    This compares to earnings of $0.60 per share same quarter last year, so reported EPS means a gain of 41.67%.
    ADM revenues and profits chart