DE closes below its opening price unable to hold early session gains
Deere & Company (DE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, DE ended Wednesday at 215.40 losing $0.37 (-0.17%), but still slightly outperforming the S&P 500 (-0.46%). Trading $1.76 higher after the open, Deere & was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (DE as at Sep 16, 2020):
Wednesday's trading range has been $4.06 (1.87%), that's slightly below the last trading month's daily average range of $5.00. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for DE.
Prices are trading close to the key technical support level at 212.45 (S1). After having been unable to move lower than 215.19 in the prior session, the stock found buyers again around the same price level today at 214.86. The last time this happened on September 11th, DE gained 1.10% on the following trading day.
Although the share is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Selling could speed up should prices move below the nearby swing low at 213.00 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Deere &. Out of 388 times, DE closed higher 55.93% 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 60.31% with an average market move of 0.84%.