DE breaks back below 20-day moving average
Deere & Company (DE) Technical Analysis Report for Jul 01, 2020 | by Techniquant Editorial Team
DE ended Wednesday at 156.85 edging lower $0.30 (-0.19%) on low volume, underperforming the S&P 500 (0.5%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (DE as at Jul 01, 2020):
Wednesday's trading range has been $4.84 (3.03%), that's slightly below the last trading month's daily average range of $4.89. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly 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 June 26th, DE actually gained 3.13% on the following trading day.
Prices are trading close to the key technical support level at 154.85 (S1). The share closed back below the 20-day moving average at 156.89.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Further selling might move prices lower should the market test June's nearby low at 147.40.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Deere &. Out of 164 times, DE closed higher 54.88% 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 seven trading days, showing a win rate of 55.49% with an average market move of 0.26%.