Don’t Sweat the Deere Stock Chart Pullback
Machinery stock Deere & Co (NYSE:DE) has been facing challenges in recovering from its mid-August post-earnings bear gap of 6.8%, which pushed it further away from its May 16 record high of $533.78. The company has been in the spotlight due to Trump tariffs, and recent news from the federal appeals court is worth keeping an eye on. Additionally, the stock’s recent pullback is testing a historically bullish trendline.
According to Schaeffer’s Senior Quantitative Analyst Rocky White, DE is currently within 0.75 of the 200-day trendline’s 20-day average true range (ATR), after spending at least 80% of the last 10 days and 80% of the last two months above it. This situation has occurred five other times over the past three years, with the stock being higher one month later 60% of the time, averaging a 6.5% gain. If DE were to make a similar move from its current price of $475.39, it could reach $506.29, potentially erasing most of its August slide.
When considering Deere stock’s next move, options may be a viable strategy. Options traders are currently pricing in low volatility expectations, with DE’s Schaeffer’s Volatility Index (SVI) at 22%, ranking in the low 9th percentile of its annual range.
In conclusion, Deere & Co is facing challenges in its stock performance, but there may be potential for a rebound based on historical trends and low volatility expectations. Investors should keep a close watch on developments related to Trump tariffs and the federal appeals court decision, as these factors could impact the stock’s future movement.
