During Wednesday's Mad Money program, Jim Cramer told his viewers that investors can look into the bull market in agriculture and the bull market in environmentally-friendly energy. Cramer was bullish on Deere & Co. (DE) and some other names. Let's zero in on DE.
We looked at the charts and indicators of DE on August 17 and wrote that "Traders could look to buy a dip to $375 risking to $345. The $438 area is our first price target."
In this daily bar chart of DE, below, we can see that traders got an opportunity to go long DE on a dip. Prices have rebounded quickly and are back above the 50-day moving average line. The On-Balance-Volume (OBV) line made a temporary dip and the Moving Average Convergence Divergence (MACD) oscillator is poised to cross to the upside for a new buy signal.
In this weekly Japanese candlestick chart of DE, below, we see a positive display. Prices are trading above the rising 40-week moving average line. The weekly OBV line is moving in the right direction and the MACD oscillator has narrowed towards a new buy signal.
In this daily Point and Figure chart of DE, below, we used close only price data. We can see a $480 price target.
Bottom line strategy: Traders should stay long DE and add to longs above $390. Raise stops to $350. The $480 area is our price target now.
