Deere & Company (DE) rallied to the top of its trading range and is still pushing higher Friday as traders and investors liked the company's latest earnings figures. DE beat expected EPS and revenue numbers handily. Prices have gapped to the upside so let's put on our green baseball cap and check out the charts.
In the daily bar chart of DE, below, we can see that prices have quickly responded to the fundamental news and have gapped higher. Prices were above the 50-day moving average line and the 200-day moving average line coming into Friday. The slopes of both averages are likely to turn positive in the days ahead.
The On-Balance-Volume (OBV) line has been steady since early November and remained firm even when the price of DE declined. A new high in the OBV line is likely by Friday's close.
The Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal earlier this month and should cross the zero line soon for an outright go long signal.