Deere & Co. (Friday’s close US$169.05) traded in a wide horizontal trading range mostly between US$70 and US$98 for about six years (dashed lines). The stock had a breakout from this range in early 2017, reached a high of US$175.26 in February, 2018, (A), and then pulled back and settled in another trading range mostly between US$130 and US$165 (dotted lines).
A sustained rise above ±US$166 would signal the resumption of the up-trend toward higher targets.
Only a decline below ±US$150 would negate the breakout potential.
A rise above ±US$166 would signal Point & Figure targets of US$180 and US$195. The large trading ranges (dashed and dotted lines) support higher targets.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
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Chart source: www.decisionplus.com
Monica Rizk
Ron Meisels