DE breaks back below 200-day moving average
Deere & Company (DE) Technical Analysis Report for Jul 07, 2020 | by Techniquant Editorial Team
DE ended Tuesday at 158.70 losing $1.52 (-0.95%) on low volume, but still slightly outperforming the S&P 500 (-1.08%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (DE as at Jul 07, 2020):
Tuesday's trading range has been $2.92 (1.84%), that's far below the last trading month's daily average range of $4.75. 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. Prices continued to consolidate within a tight trading range between 157.52 and 161.92 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Bullish Spinning Top which are both known as bullish patterns and one bearish pattern, the Shooting Star. The last time a Bullish Hikkake Pattern showed up on March 23rd, DE gained 13.36% on the following trading day.
The share closed back below the 200-day moving average at 158.77.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 161.92 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Deere &. Out of 112 times, DE closed higher 58.93% 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 55.36% with an average market move of 0.40%.