DE slides to lowest close since May 26th
Deere & Company (DE) Technical Analysis Report for Jun 26, 2020 | by Techniquant Editorial Team
DE ended the week -3.76% lower at 149.04 after losing $5.41 (-3.5%) today on high volume, notably underperforming the S&P 500 (-2.42%). Today's close at 149.04 marks the lowest recorded closing price since May 26th. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DE as at Jun 26, 2020):
Friday's trading range has been $5.68 (3.71%), that's above the last trading month's daily average range of $4.73. 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 strongly lower than usual for DE.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, DE lost -2.25% on the following trading day.
Prices are trading close to the key technical support level at 147.13 (S1). The stock found buyers again today around 148.19 for the third trading day in a row after having found demand at 148.29 in the prior session and at 149.12 two days ago.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 154.85 where further buy stops could get activated. As prices are trading close to June's low at 147.40, downside momentum might speed up should the share mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Deere &. Out of 521 times, DE closed higher 55.28% 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 57.20% with an average market move of 0.61%.