Don't Ignore This Chart!

Deere (DE) Has Trouble Breaking Higher Ground

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On Thursday, Deere and Co. (DE) pushed to new highs. But the equipment could not hold the breakout and rolled over swiftly falling hard today.  Deere is sitting at a critical point on the chart. We can see the rising trend in the price action and this test of the previous high was an important one. After making it $0.03 above the previous high, the selling started. Deere gapped down this morning and looks to test the bottom trend line. If Deere holds and bounces it could be a great entry on the way to higher highs. If Deere fails to hold the trend line this will be considered a trend line failure and a double top failure. Watch the relative strength in purple at the top. If Deere breaks the horizontal line on the chart, I think we can expect more weakness. As long as it performs in line with the $SPX or better, there is a good chance of making and holding new highs.

Just a footnote here. Decision Point has launched an alerts blog for members! Find it here. Decision Point Alerts

Good trading,
Greg Schnell, CMT

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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