DE runs into sellers again around 161.59
Deere & Company (DE) Technical Analysis Report for Jul 06, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, DE finished Monday at 160.22 gaining $2.32 (1.47%) on low volume, slightly underperforming the S&P 500 (1.59%). Today's close at 160.22 marks the highest recorded closing price since June 10th. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DE as at Jul 06, 2020):
Monday's trading range has been $3.18 (1.97%), that's below the last trading month's daily average range of $4.79. 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
The share managed to close above the 200-day moving average at 158.80 for the first time since June 10th. When this moving average was crossed above the last time on June 4th, DE gained 3.46% on the following trading day. Prices are trading close to the key technical resistance level at 161.92 (R1). After having been unable to move above 161.92 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 161.59.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the close-by swing high at 161.92 where further buy stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Deere &. Out of 317 times, DE closed higher 56.47% 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 55.21% with an average market move of 0.49%.