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.