Purely from a technical perspective, the decline in Archer Daniels Midland (ADM) from the October high at 34.03 into Tuesday's low at 29.37 (-13.7%) has found support in a critical area that represents the 200-day moving average (29.22) and the 50% retracement support plateau (29.15) of the entire prior upleg from the May low at 24.22 to the October high at 34.03.

The ability of ADM to hold and to create a minor base-like pattern in and around 30.00-29.00 in the next few sessions will tell us if a new bull leg has started. Should such a scenario begin to unfold, then ADM will be heading for a retest of 34.00 in a hurry.





Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.