Deere & Company (DE) is not anticipated to report earnings until Feb. 18 before the opening of trading that day. However, the shares are up sharply Tuesday and are "knocking on" an upside breakout.
We looked at DE on Jan. 5 and wrote that "Aggressive traders could go long DE at current levels risking to $345 this time. Our price targets for now are $405 and then $483."
In light of today's trading action, let's check out the charts again.
In the updated daily bar chart of DE, below, we can see that the shares have made a large saucer-like pattern going back the past nine months. A "neckline" could be drawn across the highs from early May and prices are testing that neckline now. Interestingly, DE has made higher lows since October when the broad market averages have been particularly weak. DE is trading above the rising 50-day moving average line and the flat 200-day line.
The On-Balance-Volume (OBV) line declined to early January but has since turned upwards telling us that buyers of DE are being more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and close to an upside crossover and new buy signal.