Archer-Daniels-Midland Company : Support level could play as stepping stone
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$29.52 | $0 | $27.8 | -100% |
From a fundamental viewpoint, the company shows positive indicators with a PER of 12.37x for this year. In addition, with an "entreprise value to sales" ratio of 0.29x, the company is low valued. The turnover's growth rate adds relevance to this enterprise.
On the short term, the share was heavily penalized. The bearish trend pushed the stock towards mid and long term support of USD 28.6. Even if moving averages are downward oriented, we could forecast that this level could set up a stock’s recovery.
We suggest a long position in order to aim a return towards USD 32, with a stop loss order placed USD 27.8.