Deere in Headlights

15 de jan. de 2022

On the monthly, weekly, and daily, DE does not look good. It may seem like a Bull pennant but I believe this is a long distribution. The newest weekly close is a rejection of the top trendline. I expect it to retest the bottom of the trendline and, if the overall market is doing poorly, then DE will fail to bottom out and fall off a cliff. Price action is the biggest determinant here. The RSI, MACD, and moving averages do not suggest a bullish breakout but are more lukewarm in their current status. The newest weekly candle closing bearish is, for me, a signal that DE will now fall.

15 de jan. de 2022

Nota

Forgot to mention: an evening star candle has just closed on the weekly. That is another bearish reversal indicator.

22 de jan. de 2022

Nota

Newest weekly close suggests the evening star has been completed but it is not a full evening star. John Deere is also facing lawsuits from farmers across the USA.

Check out this video for an incredibly bearish catalyst for Deere:

"An honest conversation about John Deere with Willie Cade" by Louis Rossman on YouTube.

Long Term Bearish on Deere.