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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.

Deere  (DE) - Get Deere & Company 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.

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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.