Swing Trading Plan
Holding Period
2-7 trading days
Expected figures are probability-weighted from our historical pattern database; Trade R:R is measured from the entry, target and stop levels.
Current Setup
ANDE is forming a falling wedge pattern at 72.05, near recent resistance at 70.82. The structure score of 15.0 reflects a well-defined converging pattern with clear support at 62.97 and overhead resistance defining tight bounds. Volume is subdued at 224,918 shares (0.58x average), limiting breakout conviction despite a solid 11.0 breakout score suggesting the price action is poised for upside. The technical backdrop is neutral: RSI at 58.72 shows neither overbought nor oversold conditions, and the bullish market regime (0.59) contrasts with a bearish industrial sector (-0.47). The overall score of 64.0 reflects a moderate-quality setup with 56.99% win probability.
Stock Context
ANDE reported Q2 2026 with adjusted EBITDA of $140 million, fueled by record ethanol production and strong fertilizer results. Q2 2026 net income was $57M ($1.65 per diluted share), up from $7.9M in Q2 2025. This strong profitability is driving the recent momentum—the stock gained 4.63% over one month and is trading 93.94% above its 52-week low. ANDE is investing $60 million at its Clymers, Indiana ethanol plant, with capacity additions of 30 million gallons expected by mid-2027. Management is focused on renewables expansion while expecting agribusiness tailwinds from large corn crops and geopolitical dynamics, believing the ag market trough was set in 2025. However, insiders have executed 22 stock sales versus zero purchases in the past six months, raising concerns about valuation confidence.
What to Expect
A successful falling wedge breakout targets 75.24 on the conservative measure, representing just 4.4% upside from current levels. Volume confirmation is crucial—current relative volume of 0.57 needs to exceed average as price tests the 70.82 resistance and escapes above. Invalidation occurs at 62.97 support; a drop below this level suggests the pattern failed and selling pressure remains. With a 56.99% win probability, the setup indicates slight edge for bulls, though the modest target and subdued volume suggest limited follow-through potential. The ATR of 2.26 (3.14% of price) indicates low volatility support for controlled risk management.
Risk Factors
Heavy insider selling—22 sales versus zero purchases over six months—signals insiders may view current valuations as stretched, creating downside risk. The industrial sector is in a bearish regime (-0.47 score), headwind against a bullish breakout in this cyclical space. Upcoming third-quarter earnings (likely late October/early November) could disrupt the pattern if results disappoint relative to the strong Q2 narrative. The company faces exposure to commodity price volatility, grain crop dynamics, and ethanol margin compression if fuel prices spike. Volume deficit (current at 0.57x average) weakens pattern confirmation, raising the risk that a breakout fails quickly without institutional participation. Beta of -0.04 provides minimal downside buffer in a market correction.
How We Find and Score This Setup
We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.
Frequently Asked Questions
Is ANDE a good swing trade?
ANDE scored 64 out of 98 on our falling wedge scan, with a 57% historical win probability over a 2-7 trading days hold. Moderate setup based on our systematic scoring.
What is the entry, target, and stop loss for this setup?
The setup's reference price is $72.05, with a conservative target of $75.24 and a stop loss at $67.13.
What would invalidate this falling wedge setup?
A close below the stop loss at $67.13 would invalidate the setup and suggest the pattern has failed.
How is the win probability calculated?
Win probability is a calibrated estimate of how similar historical falling wedge setups performed over the following 10 trading days, drawn from a database of 370,000+ historical pattern detections across 6,000+ NYSE and NASDAQ stocks.