Shareholders of ag equipment maker John Deere ( DE) got a nice surprise Wednesday morning as the company blew away their quarterly numbers. We have not reviewed the charts of DE since February 8 so a new one is in order.
In this daily bar chart of DE, below, we can see that prices made a low in July and climbed strongly. Prices were in an uptrend above the rising 50-day moving average line and above the rising 200-day moving average line ahead of today's earnings beat. The trading volume increased from the middle of October probably in anticipation of earnings.
The daily On-Balance-Volume (OBV) line has been strong and made a new high for the year ahead of prices making a new high. The OBV line can at times be a leading indicator.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line and should turn higher to a fresh outright buy signal.
In this weekly Japanese candlestick chart of DE, below, we can see a bullish picture. Prices are poised to test/best the highs of early 2022. DE is trading above the rising 40-week moving average line.
The weekly OBV line is rising and very close to making a new high telling us that buyers of DE have been more aggressive. The MACD oscillator is bullish.
In this daily Point and Figure chart of DE, below, we can see the price action through Tuesday's close. The chart shows a price target in the $466 area.
In this weekly Point and Figure chart of DE, below, we can see a potential longer-term price target in the $559 area.
Bottom line strategy: Traders who are long DE could consider booking partial profits on the approach towards the daily Point and Figure price target of $466. This is a tactical move and does not mean that the uptrend in DE is over. Raise your sell stops on the balance of your position.
Let's get back to the basics of cash reallocation and see why I'm not freaking out, but I'm also not in a mood for risk.
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