Deere John is a breakout candidate

27 במאי 2015

DE

If you look at the monthly chart John Deere could test that All-time high it bounced off of in 2011 (and big round number) at $99.80

Zooming in on the weekly also shows a close above $93 is out of the resistance line in the top of the monthly pennant I drew.

Buy the stock now or on a Friday close above $93
or
Delta 40, JAN16 97.5 Call is a cheaper way of getting long it was only at 3.50 this morning. If DE takes longer than 8 months to test the all-time high then that is the only con to buying calls.

The weekly chart has the ATR trail stop strategy indicator** that I like to use on trending stocks. The ATR trail stop is the yellow dot trailing below today's candle (blue dot if trending lower). A close below this level is when I am stopped out. I personally have been trading the ATRPeriod value at 10 with the ATRmultiplier value at 2.

That said, today the stop would be below $89 but know that this value is adjusted at every closing price.

**Big ups to Sylvain Vervoort (or user HPotter on here) for writing this and publicly posting the script to get this strategy on charts.