Deere & Company : Wait for a bullish reaction
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$76.62 | $80 | $74.1 | +4.41% |
In the second quarter, ended in late April, the company posted a net profit of $1 billion against $904.3 million, a year earlier. Revenues rose by 12% to $10 billion. The management anticipates a net income of $3.35 billion against $3.27 billion some time ago. According to Thomson Reuters’consensus, the average target price is estimated at $94.4, which represents a potential gain of 23% compared to the current price.
Graphically, once the USD 83.5 short-term resistance was hit, the share has declined and reach now the USD 76.5. This point has already been tested and a rebound was occured on this level.
Therefore we suggest to take a long position above the USD 76.5 in closing price to target the USD 80 and USD 83.5. A stop-loss will be fixed at USD 74 to avoid any disappointments.