Is Deere Breaking Out?

Published on Wednesday, 20 June 2012 05:28 Written by TradersHuddle Wire

New York, June 20th (TradersHuddle.com) - Shares of Deere & Company (NYSE:DE) closed the session at $77.03 just above calculated resistance at $75.44. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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.

The stock was trading in a well defined range with support at $69.51 and resistance at $75.44. Given that this range was broken, traders will be closely monitoring Deere's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Deere is still near the broken resistance level, traders will be focusing on the $75.44 level to see if the stock holds the breakout without rolling over.