Deere & Co. traded below a falling trend-line for most of 2011 and 2012 (dashed line). It then rallied above this line to a high of $95.60 (A) and subsequently stayed in a wide horizontal trading range between $80 and $95 for more than two years (dotted lines). Recent price action suggests bullish sentiment, renewed investor interest and the probability of a major breakout. A sustained rise above $95-$96 would signal this. Only a sustained decline below $88 would be negative. A rise above $95-$96 would signal Point & Figure targets of $109 and $124. The large trading range (dotted lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. Ron Meisels is a contributor to the www.NA-marketletter.com website and tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.