DE closes within previous day's range
Deere & Company (DE) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
DE finished Thursday at 157.90 gaining $1.05 (0.67%) on low volume, slightly outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. Trading $3.05 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. 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 Jul 02, 2020):
Thursday's trading range has been $4.38 (2.76%), that's slightly below the last trading month's daily average range of $4.85. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for DE.
One bearish candlestick pattern matches today's price action, the Shooting Star. The last time a Shooting Star showed up on February 24th, DE lost -3.03% on the following trading day.
The market managed to close back above the 20-day moving average at 156.73. Prices are trading close to the key technical resistance level at 158.86 (R1).
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Deere &. Out of 381 times, DE closed higher 56.17% 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 60.10% with an average market move of 0.72%.