Deere Is in the Green Again

With the shares soaring, we have updated our price targets.

Deere & Co. (DE) is soaring.

Back on Aug. 26 we reviewed the charts of the agriculture machinery maker and recommended that, "Traders should stay long DE and add to longs above $390. Raise stops to $350. The $480 area is our price target now." Unfortunately DE slumped in September and October and would have stopped us out.

With DE back up to its August/September highs a fresh look at the charts is needed.

In the daily bar chart of DE, below, we can see that the shares have rallied above the 50-day and the slower-to-react 200-day moving average lines. The trading volume has picked up in recent days and the On-Balance-Volume (OBV) line looks like it may be breaking a multi-month decline.

The Moving Average Convergence Divergence (MACD) oscillator has just edged back above the zero line for a buy signal.

 

In the weekly Japanese candlestick chart of DE, below, we can see an improving technical picture. Prices show a strong white candle above the 40-week moving average line -- a breakout from a triangle formation.

 

The weekly OBV line has been firm since March. The MACD oscillator is very narrow and close to a buy signal.

 

 

In this daily Point and Figure chart of DE, below, we can see the recent price strength and a price target of $483.

 

 

Bottom-line strategy: Aggressive traders could go long DE at current levels risking to $345 this time. Our price targets for now are $405 and then $483.

 

(Deere is a holding in the Action Alerts PLUS member club . Want to be alerted before AAP buys or sells DE? Learn more now. )

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