DE runs into sellers again around 153.96
Deere & Company (DE) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
DE ended Monday at 153.71 gaining $4.67 (3.13%) on low volume, strongly outperforming the S&P 500 (1.47%). The bulls were in full control today, moving the market higher 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 29, 2020):
Monday's trading range has been $3.64 (2.41%), that's below the last trading month's daily average range of $4.73. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for DE. Prices continued to consolidate within a tight trading range between 148.19 and 156.62 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, DE actually lost -3.50% on the following trading day.
Prices are trading close to the key technical resistance level at 154.85 (R1). After having been unable to move above 153.87 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 153.96.
Deere & 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 close-by swing high at 154.85 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 148.19 where further sell stops could get triggered. As prices are trading close to June's low at 147.40, downside momentum might accelerate 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 OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Deere &. Out of 628 times, DE closed higher 52.71% 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 56.53% with an average market move of 0.71%.