Trading Idea - Deere Broke Resistance, What to Expect?

Published on Friday, 03 September 2010 07:00 Written by Christopher Lynn

New York, September 3rd (TradersHuddle.com) - Shares of Deere & Company (NYSE:DE) closed the trading session at $67.75 just above calculated resistance at $64.85 moving to what appears to be a new range, as this move will clearly raise the attention of 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.

Deere's stock was trading in a well defined range with support at $60.45 and resistance at $64.85, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Deere's stock is still near the broken resistance level, traders will be focusing on $64.85 to see if the stock holds the breakout without rolling over.