DE closes lower for the 2nd day in a row
Deere & Company (DE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DE finished the month 12.19% higher at 176.31 after losing $1.73 (-0.97%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DE as at Jul 31, 2020):
Friday's trading range has been $3.56 (2.01%), that's slightly below the last trading month's daily average range of $3.63. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for DE.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Hanging Man showed up on May 29th, DE lost -1.96% on the following trading day.
Prices are trading close to the key technical resistance level at 176.93 (R1).
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 180.76 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 172.91 where further sell stops might get triggered. With prices trading close to this year's high at 181.99, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the six 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 58.04% 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 0.39%.