DE closes above its opening price after recovering from early selling pressure
Deere & Company (DE) Technical Analysis Report for Aug 12, 2020 | by Techniquant Editorial Team
DE ended Wednesday at 192.31 losing $0.91 (-0.47%), notably underperforming the S&P 500 (1.4%). Trading up to $1.70 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on August 7th, DE gained 3.49% on the following trading day. 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 Aug 12, 2020):
Wednesday's trading range has been $3.23 (1.69%), that's slightly below the last trading month's daily average range of $3.49. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DE.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 179.60.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 195.85 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. Its common bullish interpretation has been confirmed for Deere &. Out of 598 times, DE closed higher 51.00% 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 55.18% with an average market move of 0.23%.