After yesterday’s big gain shares of $DE are fading this morning. Deere gained 4.7% on Monday, its best gain since May, after opening the session with a huge upside gap. Volume was once again very heavy. Since earnings(11/21)there have now been three days of big time accumulation.
At yesterday’s high $DE had stretched its post earnings gain to a 24% gain. That’s quite a run in just over two weeks. This morning’s fade is not a surprise.
$DE has a solid support zone in place now. The $156.00 to $155.00 area should be considered a low risk buy zone. This zone includes the November high, last week’s high as well as the powerful Monday breakout gap. On the downside a close back below $152.00 would indicate a more drawn out pullback is developing.
At time of publication we do not have a position in $DE.