John Deere stock was up 2.77% yesterday, most probably resuming the uptrend that began in October. The farm equipment manufacturer was congratulated in its 175th anniversary by Nortrax, the largest John Deere dealership group in North America. John Deere stock price dropped 40% during 2011 when DE shares price collapsed from $100 to $60 per share on October 2011. That low has been the bottom of a downtrend that lasted 6 months, being a part though of a 3-year strong uptrend. DE stock has gained $75 per share since the beginning of 2009, quadrupling its value! If stock traders are interested in buying DE stock, technical analysis recommends a tight stop loss at $77.
Deere stock seems to have found support at $80 price level. During previous months DE stock has met considerable resistance at that level according to the daily stock chart. Finally John Deere stock broke above the resistance level on the first day of 2012, initiating a $10 gain period. The stock price has pulled back to the resistance level since then, but the bullish candlestick pattern that was completed with yesterday’s trading session allows positive predictions regarding the future of DE stock’s performance.
Can Deere stock hit prices above $100 per share?
The resistance level at $100 isn’t going to surrender that easy in my opinion. Being such an important round number, that fact alone is sufficient to keep DE stock price in double-digit prices. Should the stock manage to overcome $100 per share, more traders and investors will join, pushing the price higher. Until then stock traders might look for profitable swings inside established trends. Nowadays DE stock buyers didn’t allow the price to go any lower than $78.5 and I’m going to trust their instinct.