DE breaks above 20-day moving average for the first time since February 26th
Deere & Company (DE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, DE finished Thursday at 139.09 gaining $10.60 (8.25%) on low volume, strongly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 136.73, the stock confirmed its breakout through the previous session high after trading up to $3.42 above it intraday.
Daily Candlestick Chart (DE as at Mar 26, 2020):
Thursday's trading range has been $13.01 (10.06%), that's above the last trading month's daily average range of $10.02. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for DE.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 139.08 for the first time since February 26th. Unable to break through the key technical resistance level at 139.29 (R1), the market closed below it after spiking up to 140.15 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on March 19th, DE lost -6.71% on the following trading day.
Although Deere & is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Deere &. Out of 297 times, DE closed higher 52.53% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.57% with an average market move of 0.25%.