6/17/2017 – John Deere (DE) Stock Chart Breakout
John Deere (DE) Stock Chart Breakout
After President Trump won the election, a Trendy Stock Charts member requested that I cover some "Trump" stocks. The stocks I picked for my first article based on "Trump" stocks were John Deere (DE) and Caterpillar (CAT). After all, there was talk about significant infrastructure spending with Trump as President.
In that January 2017 article, I compared the charts for John Deere (DE) against the charts for Caterpillar (CAT). I was comparing the charts to see if one has greater potential for price gains than the other. I discussed a John Deere (DE) stock chart breakout that appeared to be in progress.
Based on the chart analysis in that article, I concluded that John Deere's (DE) share price had the potential for greater returns when compared to Caterpillar's (CAT) share price.
So was I right? Here are the resulting returns since my January 2017 article titled "1/21/2017 – Caterpillar (CAT) & John Deere (DE)":
John Deere (DE)
$21.47 / 20.11%
$13.33 / 14.09%
John Deere (DE) is the clear winner with a return of 20.11% vs 14.09% for Caterpillar (CAT). DE's share price earned a full 6% more than CAT's share price. With DE's current uptrend, its percentage return is only going to keep increasing at a faster pace.
However, while John Deere (DE) is the clear winner by both dollar and percentage returns, you really couldn't complain about a 14% return for Caterpillar (CAT) either. That 14% return is less than a half year return. If Caterpillar (CAT) can keep the pace, it could offer a 30% return Y-T-D.
However, this article is going to focus on John Deere (DE), the winner of the competition. Unless there is request from a Trendy Stock Charts member, I can look at the stock charts again for Caterpillar (CAT) and re-analyze its upside potential at a later date.
With John Deere's (DE) share price at $128.21, it is in the range of profit taking that I mentioned in the January article. Does it have the potential to keep going? Let's start reviewing the John Deere (DE) stock chart breakout that has been in progress and see what sort of upside potential seems to remain.
John Deere (DE) - Long-Term Breakout
This first chart is a 10 year monthly candlestick chart to monitor the John Deere (DE) stock chart breakout. This is a long-term breakout since this is being analyzed on a monthly candlestick chart.
The first upper price target was the $120 - $124 price range. This price range was calculated by adding the width of the trading channel to the top of trading range. The trading channel had a $25 width. Add the $25 to the top of the trading range and come up with an approximate $120 price target. That price target using that method has been met. It's time to calculate additional upside price targets, if they still apply.
One price target range that I calculated is the…...
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I look at upside target prices, both short and long-term, for John Deere's (DE) share price.
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