Deere Is Near to the 50 and 200 Day Moving Averages

Published on Tuesday, 03 July 2012 05:40 Written by TradersHuddle Wire

New York, July 3rd (TradersHuddle.com) - Deere & Company (NYSE:DE) closed the trading day at $80.45, near its 50 day and 200 day moving averages currently set at $76.95 and $78.11 respectively. Deere's price action placed the stock above these important levels, which could translate into a trading opportunity.

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.

Although, the price is above important moving averages, it's important to highlight that this is not a prime setup for buying the dip strategy, as the 50 day moving average is currently below the 200 day moving average.

The peaks and troughs algorithm shows calculated support at $73.75 and resistance at $77.99. These levels should also be evaluated by traders when planning their next move, as they provide an insight into the latest price action.

If traders want to establish a long position in Deere, it will certainly be better to wait, given that the stock is technically broken with the 50 day moving average trading below the 200 day moving average. Traders can also look at the current range defined by the peaks and troughs to establish a short trade versus those levels.