• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Deere Could See a Period of Consolidation Ahead

The conditions I saw last month are still intact.
By BRUCE KAMICH
Oct 13, 2020 | 01:53 PM EDT
Stocks quotes in this article: DE

Jim Cramer had positive things to say on Mad Money Monday night about Deere & Co. (DE) . When we looked at the charts of DE on Sept. 23, we wrote that, "Weakness in the broader market averages could drag DE lower in the days and weeks ahead. Longs should nail down profits." Well, DE and the broader market decided to ignore my forecast over the past three weeks, but that has not significantly altered the charts.

Let's check the charts out again. 

In the updated daily bar chart of DE, below, we can see a mostly bullish picture. The shares have tacked on another $20 since our take profits recommendation. DE is still above the rising moving average lines.

The On-Balance-Volume (OBV) line is still pointed up but the 12-day price momentum study shows lower highs from September to October. This slowing momentum reading is a bearish divergence when compared to the higher price highs over the same time period. This is not a huge multi-month divergence but it is a heads up that the rally is slowing. 

 
In the weekly bar chart of DE, below, we can see that the share prices have doubled from their March low and this might draw out some profit-taking. The 40-week moving average line remains bullish.
 
The OBV line has made a new high but the 12-week price momentum is slowing. 
 
 
 
In this daily Point and Figure chart of DE, below, we can see a potential upside price target of $241. 
 
In this weekly Point and Figure chart of DE, below, we can see a possible upside price target in the $269 area but we can also see that prices are extended and probably in need of a period of consolidation. 
 
 
 
Bottom-line strategy: DE has continued higher after our call to take profits. I hate leaving money on the table but the conditions I saw last month are still intact despite the further rise. Stay defensive.
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Agriculture | Industrials | Mad Money

More from Stocks

When it Comes Time to Sell, Will You Act or Will You Freeze?

James "Rev Shark" DePorre
Jan 16, 2021 10:00 AM EST

Why don't more people embrace the ease and power of selling stocks? Why do they freeze and do nothing as losses build?

Hungry Traders and Stock Opportunities Aren't Likely to Go Away Soon

James "Rev Shark" DePorre
Jan 15, 2021 4:40 PM EST

It doesn't take much time for stocks with strong momentum to reset and continue on their way.

At What Price Is Ballard Power Systems a Buy?

Bruce Kamich
Jan 15, 2021 3:09 PM EST

Let's check out the latest charts of BLDP.

United Parcel Service Is Testing Key Support

Bruce Kamich
Jan 15, 2021 2:30 PM EST

A look at the charts of UPS.

A Buy and Hold Play With Hennessy Capital V

Timothy Collins
Jan 15, 2021 2:24 PM EST

HCICU hit the public markets today.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    When it's time to sell, will you act or freeze?
  • 08:35 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 1/13/2021

    Lower highs... SPX (Long-Term View) The 1/8/2...
  • 08:07 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/12/2021

    Watch if the recent trend of lower highs continues...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login