Deere Stock Chart Shows It Could Retest 2014 Peak Near $95

NEW YORK (RealMoneyPro) -- Deere  (DE) was one of the top gainers in the S&P 500 Friday. The stock rose more than 4% on very heavy trade following Friday morning's second-quarter earnings report.

This powerful breakout move began with a huge upside gap, completely reversing the previous Friday's nasty 3.35% flush in the process. Deere trended steadily higher since the bell to reach new 2015 highs.

In late March, Deere ended a steep pullback after testing its 200-day moving average. During the prior month, the stock peaked just below $93 as the rally off January multiweek lows ran out of steam. Since the 200-day test on March 27, Deere has drifted higher on very light trade.

This listless action changed dramatically a little over a week ago when shares broke through a key overhead trendline that had linked the February, March, and initial May highs. Although volume was just average, the price action was very bullish.

Unfortunately for the bulls, a JPMorgan  (JPM) downgrade the next day smoked the stock. Deere fell more than 3% on its heaviest downside trade of the year on May 15.

Despite this high-volume reversal, the stock stabilized quickly, and as this week began, shares were leaving behind a second straight higher monthly low.

Deere ( DE) -- Moving Averages
Now that last week's spike high has been cleared, the choppy consolidation that began in late February is giving way to a healthy rally.

Adding fuel to the breakout is a very high short interest ratio of 13.4 that the bears will be scrambling to cover well into next week.

If you liked this article you might like

The Stock Market Could Be Reduced to Rubble, Doug Kass Explains

I Cannot Be a Cheerleader Because I Am Blinded by a Sense of History

This Is What a $300 Million Robotic Weed Killer Looks Like

FMC Stock's Impressive Rally Has Another 20% to Gain: Jim Cramer

These Stocks Are Ready to Reverse Course