Deere near Key Resistance Area

Published on Tuesday, 17 January 2012 05:40 Written by Christopher Lynn

New York, January 17th (TradersHuddle.com) - Shares of Deere & Company (NYSE:DE) are trading very close to calculated resistance at $84.85 with the current price action closing at just $84.66 placing the stock near levels that make it difficult to buy.

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 defined by current calculated support defined at $73.23 and by the resistance level at $84.85, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Deere, as the stock is well above support, however, as the stock pulls back towards $73.23 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $84.85 then traders will get an opportunity to enter Deere stock by establishing a position as the stock moves to a higher range.