DE closes below its opening price unable to hold early session gains
Deere & Company (DE) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, DE ended Monday at 149.14 losing $2.98 (-1.96%), strongly underperforming the S&P 500 (0.38%). Trading $1.61 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on May 11th, DE lost -3.59% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DE as at Jun 01, 2020):
Monday's trading range has been $3.55 (2.38%), that's below the last trading month's daily average range of $5.16. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for DE.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Deere & closed back below the 100-day moving average at 149.41 for the first time since May 26th. After having been unable to move lower than 147.87 in the prior session, the share found buyers again around the same price level today at 147.40.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Deere &. Out of 199 times, DE closed higher 59.80% 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 58.29% with an average market move of 0.42%.