DE trade ideas
$DE Deere and company back to the $200s?Deere and company looks like it's rolling over from a breakout above resistance at $392. If price breaks back below the blue trendline, then it sets up the possibility for sharp downside in the coming weeks.
I think that we'll likely find support at $276 which is the 50% retracement from the move. Let's see how it plays out.
3/27/22 DEDeere & Company ( NYSE:DE )
Sector: Producer Manufacturing (Trucks/Construction/Farm Machinery)
Market Capitalization: $133.896B
Current Price: $436.45
Breakout Price (hold above): $436.40
Buy Zone (Top/Bottom Range): $432.50-$421.20
Price Target: $448.80-$450.00
Estimated Duration to Target: 10-12d
Contract of Interest: $DE 4/14/22 450c
Trade price as of publish date: $5.55/contract
Buy me some Deere Corn!No need to get too cute with Deere technical analysis or even fundamentals. Corn is king and soybeans follow suit to ultimately be the driver of bigger Deere stock movements. If you wanna play the ags, reduce your risk to single stock exposure and buy an ag etf instead (e.g.DBA AMEX:DBA .)
$DE Weekly Breakout.I really like this setup here. Deere & Company consolidated for about two years and then moved to the upside for a 120% gain over the next year. Then it rested and digested those gains for about ten months. This week $DE broke out of the consolidation on heavy volume. What I really like about this breakout is the previous week saw heavy selling volume signifying the remaining sellers exited their positions. A doji candle formed suggesting indecision on behalf of traders. Well, it looks like the decision has been made to the upside. RSI is also positive and pointing upwards. I like $DE with a short to medium term 20% upside based on the width of the base. A close below $400 would be bearish and the thesis would be invalid IMO. A more aggressive stop would be the high of the 3/15/21 weekly candle. $392.42.
Full Disclosure: I am long $DE.
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DE maybe wants ATH breakout?MACD BULL Cross on the Daily and Bullish engulfing candle also on the weekly. Resistance at very psychological level of 400.
I am acknowledging my bearish bias overall and am not sure if it can continue this with the current market conditions, but indicators and levels perhaps show a possible breakout coming. Obvious big spot at 400. Can we break through this time or will we fail again like we did on May 2021 and February 2022?
DE Deere weekly short ideaDeere recently reported earnings causing sellers to step in last week for a -6% rejection on an attempted box breakout.
In my opinion, Deere looks like distribution and at the very least, should continue to see more downside in the coming weeks - Typically after a failed breakout price should retest lower box support or $327 zone.
With Russia / Ukraine, CPI and Fed rate hike head winds, I like the R/R on a short trade here.
I'm in APR $350 Puts with -25% premium stop, target is $327 zone.