Deere, Reversal Soon?

Published on Tuesday, 28 August 2012 04:36 Written by TradersHuddle Wire

New York, August 28th (TradersHuddle.com) - Shares of Deere & Company (NYSE:DE) ended the trading session lower by $1.4 or -1.83% from its previous close. Deere's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

Deere & Company (NYSE:DE) manufactures and distributes farm equipment and related service parts used in construction, earthmoving, material handling and timber harvesting. It also provides financing to dealers of new and used agricultural, commercial and consumer, construction and forestry equipment.

Deere's current stock range is determined by calculated support defined at $73.75 and by the resistance level at $79.02, which should be used by traders planning their next move.

If traders want to establish a position in Deere, they need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal in the current price action. The Bearish engulfing pattern is a leading warning sign; therefore, traders should closely monitor Deere for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: