Deere (DE) is testing a triple top at 83.25 after moving out of consolidation. It has support for a run higher from the rising and bullish Relative Strength Index (RSI) and a Moving Average Convergence Divergence indicator (MACD) that is positive. There is a gap above from 86.63 to 86.88 and resistance above that at 88.66. The 3-box reversal Point and Figure chart (PnF) carries a price objective of 102.
Support lower is found at 80.55 and 78.30 followed by 76 and 74. If it does not break on Monday there will likely be more trade alternatives. October does not have any strikes over 85 open now and November will only begin trading Monday. But there are some good options now as well.
Trade Idea 1: Buy the stock on a move over 83.25 with a stop at 81.75.
Trade Idea 2: Buy the October 85 Calls on a move over 83.25.
Trade Idea 3: Sell the October 75 Puts on a move over 83.25.
Trade Idea 4: Buy the December 75/87.5 bullish Risk Reversal
Disclaiemr: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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