DE closes lower for the 2nd day in a row
Deere & Company (DE) Technical Analysis Report for Aug 13, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DE ended Thursday at 189.50 losing $2.81 (-1.46%), significantly underperforming the S&P 500 (-0.2%).
Daily Candlestick Chart (DE as at Aug 13, 2020):
Thursday's trading range has been $2.72 (1.44%), that's below the last trading month's daily average range of $3.41. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DE.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 180.41. The last time this happened on July 20th, DE actually gained 1.06% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Deere &. Out of 303 times, DE closed higher 56.11% 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 55.78% with an average market move of 0.59%.