Deere & Co. (DE) is known throughout the American heartland, but despite this name recognition its chart is stuck in a technical rut.
In this daily chart of DE, above, we can see that prices for DE have been stuck in a sideways trading range since late August last year. Prices have been testing the 200-day moving average line from above this month.
The On-Balance-Volume (OBV) line has moving lower the entire past 12 months. A declining OBV line is created by the volume of shares traded on DE being heavier on days when DE closes lower than on up days. A downtrending OBV line says that sellers are more aggressive and are willing to sell DE even when it is down instead of into strength.
The 12-day momentum study in the lower panel is not displaying any bullish divergences now to foreshadow a possible rally.
In this three-year weekly chart of DE, above, we can see how prices have crossed above and below the 40-week moving average line for several months. The OBV line on this time frame has been in a downtrend like the daily chart, but for a lot longer.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it is crossing to a liquidate longs sell signal and could decline below the zero line for an outright sell signal. DE could continue its sideways trading but the weak OBV lines (daily and weekly) suggest softer prices could lie ahead.