Deere Stock Runs to New Highs. Here's the Trade.

Posted by jbrumley on November 23, 2022 3:01 PM

-- Deere stock is hitting all-time highs after a strong earnings report. Here's how to trade it from here. --

By Bret Kenwell,

Shares of Deere (DE) at last check were up more than 5% and were hitting all-time highs on the day after the agricultural-equipment giant reported earnings.

The better-than-expected results are giving investors confidence to bid up Deere when much of the stock market remains brutally bearish.

Deere's earnings grew 80% year over year and topped expectations, while revenue of $15.54 billion grew 37% and topped analysts' expectations by more than $2 billion.

The company also gave a solid outlook for 2023.

Most other companies may be struggling, but clearly Deere isn't one of them. Investors might have had an inkling that that was the case, given the strong report that Caterpillar (CAT) delivered last month.

Now with the stock at new highs, let's look at the chart.

Trading Deere Stock

Daily chart of Deere stock

Chart courtesy of

RealMoney contributor Bruce Kamich wrote that Deere's uptrend is not over - and he's right.

The shares continue to power higher, but there's a clear level they need to get through to continue the run: The prior all-time high at $446.76.

Deere stock must clear this level and close above it if the bulls would like to see a push to $450 and beyond.

If the stock can clear $450, it may mark Deere's longer-term setup for a run to $500.

That said, the stock is up quite a bit lately, higher by about 10% in the past five days, 15% in the past month and 20% over the past three months. It's also nearing overbought territory, although that doesn't mean much without some type of move lower.

If we do get some sort of pullback, the bulls would love to see active support come into play from the 10-day moving average.

If that comes about, it would show that the bulls remain in control of the narrative and it would give Deere stock a much-needed rest after a powerful rally. It would also give it the energy to make another potential push to new highs.

With today's rally, there's also an open gap down at $416.83.

The bottom line with Deere stock is simple: Bulls remain in control and should look to buy the dips until the trend fails to hold as support.