Contrarian Stock Market Investing News - Featuring Bargain Stocks » 200-day moving average http://www.contrarianprofits.com Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Mon, 10 May 2010 15:10:45 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 Give Archer Daniels Midland (NYSE:ADM) Another Chance http://www.contrarianprofits.com/articles/give-archer-daniels-midland-nyseadm-another-chance/14199 http://www.contrarianprofits.com/articles/give-archer-daniels-midland-nyseadm-another-chance/14199#comments Wed, 25 Feb 2009 19:55:53 +0000 Charles Delvalle http://www.contrarianprofits.com/?p=14199 Just a few years ago Archer Daniels Midland (NYSE:ADM) was riding high on the back of the agriculture AND ethanol boom. But as soon as the credit crunch struck, both of those bull markets died and ADM’s stock tanked.

But finally it looks like ADM has turned a corner and is set to push higher over the months ahead.

As you can see, ADM has risen nearly 100% from its mid-October lows. While that’s a great rally, the real bullish signal is coming from the fact that ADM just broke above its 200-day moving average.

The 200-day moving average tends to be one of the strongest moving averages you can use as a support or resistance line. Usually, when a stock breaks above…

]]> Just a few years ago Archer Daniels Midland (NYSE:ADM) was riding high on the back of the agriculture AND ethanol boom. But as soon as the credit crunch struck, both of those bull markets died and ADM’s stock tanked.

But finally it looks like ADM has turned a corner and is set to push higher over the months ahead.

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As you can see, ADM has risen nearly 100% from its mid-October lows. While that’s a great rally, the real bullish signal is coming from the fact that ADM just broke above its 200-day moving average.

The 200-day moving average tends to be one of the strongest moving averages you can use as a support or resistance line. Usually, when a stock breaks above this long-term moving-average, it signals more gains to come.

To keep this play safe, all you have to do is enter a stop-loss about 10% under 200-day moving average. If ADM drops 10% under that average, it’s safe to say that the bull run will never materialize.

If ADM is on a real bull run, you could end up riding ADM shares back up to their previous highs by this time next year.

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