Oct. 31 at 6:01 AM
$ADM
ADM – Classic Cup and Handle in Formation
A high-conviction technical setup is brewing on ADM’s weekly chart – the classic Cup and Handle pattern is shaping up within textbook parameters.
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🧩 Broad Pattern Structure
Over the past 2.5 years, ADM’s price has formed a rounded bottom—a classic Cup formation—from ~
$84 (peak) to ~
$50 (bottom). This longer-term base suggests a shift in sentiment from distribution to accumulation.
The shape is smooth and U-shaped, rather than V-bottomed, indicating a constructive base-building phase — a positive sign for pattern reliability.
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🛠️ Emerging Handle Within Valid Criteria
As per standard Cup-to-Handle pattern ratios:
• Cup Depth: ~
$34 (from ~
$84 to ~
$50)
• Handle Pullback: ~
$5.5 (from ~
$64.5 to ~
$59)
• Retracement: ≈ 16% → ✅ within the ideal 15–30% range
• Handle Duration: ~2–3 months → ✅ within the acceptable 1/5 to 1/3 range of cup time
• Handle Structure: Downward drift with light volume → ✅ matches ideal flag-like shape
This consolidation phase (handle) is progressing within all standard technical norms.
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📉 Technical Indicators & Price Action View
• RSI (Weekly):
o Bullish divergence visible at the bottom
o RSI trendline break aligns with Cup completion → supports bullish momentum
• Volume:
o Volume spike on the Cup's right side shows accumulation strength
o Handle shows volume contraction, as expected
• Price Action Notes (Chart-1):
o The breakout zone near 64.5 coincides with previous support-turned-resistance
o Chart-1 also projects a "handle in making" zone between 58–60, aligning with both RSI trendline and prior support zone
No sharp V-shaped pullbacks, no volatile candles — the handle’s structure is disciplined, which enhances breakout reliability once volume confirms.
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📌 Summary
ADM’s technical setup is a textbook example of a Cup and Handle pattern forming on the weekly timeframe.
• ✅ Cup shape: Rounded, steady
• ✅ Handle depth: Within 15–30%
• ✅ Handle time: Matches ideal range
• ✅ RSI & Volume: Support the bullish continuation narrative
With strong technical symmetry, supportive RSI structure, and clean levels, this setup deserves close watch for pattern completion and sustained volume confirmation.
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🧑💼 Rajneesh Sharma is a SEBI-registered Research Analyst (Reg. No. INH000020332).
📄 Investments are subject to market risks. Read all related documents carefully before investing.
📢 Disclaimer: This is for informational purposes only. Nothing herein constitutes a buy or sell recommendation. I may or may not be holding a position in the stock mentioned.
