Trading Deere as Earnings Send Stock to New All-Time Highs

Deere stock is hitting new all-time highs after better-than-expected earnings results. Here's what the charts say for DE stock now.
Author:
Publish date:

Deere  (DE) - Get Report stock is hitting new all-time highs on Friday, after the company delivered better-than-expected earnings results.

Shares are up more than 5% on a day where the S&P 500 is basically flat. That comes as earnings of $2.57 per share breezed past expectations by $1.32 per share, while revenue of $8.93 billion crushed estimates by more than $2.2 billion.

While both figures were down year-over-year, investors are opting to bid shares of Deere higher given how much stronger the results came in vs. expectations.

Had the company reported only a small beat or even an in-line result, it’s very likely we’d be looking at a decline, not a gain on the day.

With shares up though, it’s time to take another look at Deere.

Trading Deere Stock

Daily chart of Deere stock.

Daily chart of Deere stock.

Deere stock has been trading well. The stock hammered out a really nice triple bottom in March over a span of four trading sessions. This showed that buyers were willing to step in and gobble up the stock aggressively at $105.

The dip in May looked like the selling pressure could reignite, but again bulls stepped up. The stock posted a strong reversal near $117, then gapped higher on its way to $165.

For about a month now, Deere stock has been in a strong uptrend, with buyers stepping in on each test of the 10-day moving average. After Friday’s earnings report, shares are breaking out over $195 resistance and the 123.6% extension up at $197.25.

It’s got investors asking, what now?

On the upside, I want to see if shares can hold up over $200. If so, it keeps the 138.2% extension in play near $209. Above that and a longer-term price target of $226.42 can be used, which is the 161.8% extension.

On the downside, see that Deere stock maintains above the $195 breakout level and the 10-day moving average. To see resistance become support would be a bullish development, while the 10-day has been support for more than a month now.

Below both of these marks and bulls will be begin to lose momentum. In that case, I will have $180 on my radar, which was a breakout level from early August and the February high leading up to the coronavirus selloff.