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.