Is Deere Closing in to Resistance?

Published on Tuesday, 21 August 2012 05:24 Written by TradersHuddle Wire

New York, August 21st (TradersHuddle.com) - Shares of Deere & Company (NYSE:DE) are trading very close to calculated resistance at $79.85. The stock ended the trading session at just $77.89, which is near levels that make it difficult to buy or start a position.

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 stock range is defined by its calculated support defined at $73.75 and by the resistance level at $79.85; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Deere. However, as the stock pulls back towards $73.75 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $79.85 then traders will get an opportunity to enter the stock as it moves to a higher range.