DE closes lower for the 2nd day in a row
Deere & Company (DE) Technical Analysis Report for Jun 23, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DE ended Tuesday at 153.96 losing $0.60 (-0.39%) on low volume, underperforming the S&P 500 (0.43%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (DE as at Jun 23, 2020):
Tuesday's trading range has been $2.93 (1.87%), that's far below the last trading month's daily average range of $4.59. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for DE.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on February 19th, DE actually gained 0.55% on the following trading day.
Prices are trading close to the key technical support level at 151.65 (S1).
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 158.86 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 151.75 where further sell stops might get activated. As prices are trading close to June's low at 147.40, downside momentum could accelerate should the market mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Deere &. Out of 303 times, DE closed higher 56.77% 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 55.45% with an average market move of 0.59%.