DE dominated by bulls lifting the market higher throughout the day
Deere & Company (DE) Technical Analysis Report for Jun 25, 2020 | by Techniquant Editorial Team
DE ended Thursday at 154.45 gaining $3.96 (2.63%), strongly outperforming the S&P 500 (1.1%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 152.67, the share confirmed its breakout through the prior session high after trading up to $2.18 above it intraday.
Daily Candlestick Chart (DE as at Jun 25, 2020):
Thursday's trading range has been $6.56 (4.4%), that's far above the last trading month's daily average range of $4.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for DE.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on March 6th, DE actually lost -8.56% on the following trading day. Regardless of a weak opening Deere & managed to close above the previous day's open and close, forming a bullish Engulfing Candle. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 157.27 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 156.62 where further buy stops could get triggered. As prices are trading close to June's low at 147.40, downside momentum might accelerate should the stock mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for Deere &. Out of 97 times, DE closed higher 55.67% 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 62.89% with an average market move of 0.89%.