Deere in the Headlights?Deere has been one of the better-performing members of the S&P 500 since the summer, but now it could be hitting resistance.
The main pattern on today’s chart is the falling parallel channel along the highs of April, August and October. The farm supplier probed that resistance on Friday before reversing along with the rest of the market. Could it now push lower into the channel?
Second, notice how the rejection occurred at the 50-day simple moving average (SMA) and 200-day SMA. Failure to remain above those SMAs could reflect a bearish trend.
Third, stochastics are dipping from an overbought condition.
Finally, other agricultural stocks like Mosaic and CF Industries fizzled last week after trying to rally. A continuation of that trend could potentially weigh on DE.
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