Did This AgTech Stock Just Top?

Did This AgTech Stock Just Top?

Posted On September 20, 2022 1:24 pm

Our stock today engages in the manufacture and distribution of equipment used in agriculture, construction, forestry and turf care. It operates through the following segments: Agriculture and Turf, Construction and Forestry and Financial Services.

Take a look at the 6-month chart of Deere (DE) below with the added notations:

Chart of DE provided by TradingView

Over the past several weeks, DE has created a trendline of support (yellow), which is also the “neckline” for the stock’s bearish head and shoulders (H&S) topping pattern. Above the neckline you can see the H&S pattern (red) has been completed.

Confirmation of the H&S would occur if DE were to break the support, and that is exactly what the stock did last week.

The Tale of the Tape: DE has confirmed a head & shoulders pattern. A short trade could be made on a rally up to the neckline, with a protective stop set above that level.

Before making any trading decision, decide which side of the trade you believe gives you the…

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