The specialist in agricultural and construction equipment, Deere & Co, has published financial results better than estimates and has raised its forecast.

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.