John Deere (DE)

Several stocks are running into their 50-day moving averages after the nasty day of trading today. RIO, POT, and MON are three I've seen. Another one is John Deere (DE). These could be good swing trade candidates. The bearish action today (DJI down 311 points) has me a bit scared to throw money into the volcano. Here's a chart of DE. I might man up and buy some tomorrow if it acts right. Click the picture to see full-size.


It closed today at $121.02.

It has key support at $120 (-1%).

It could hit resistance again at $132 if it bounces. (+9%)

That's a risk/reward ratio of about 1/9 - not too shabby!

I might buy 60 shares x $122 = $7320. I'll put a protective stop order at $119.90 (-1.7%, -$126) My price target will be $132 (+8%, $600). That's actually about a 1/5 risk/reward. The stock was quite volatile today, and it could be tomorrow, so getting stopped out is a concern. Timing my entrance will be key. If it takes off, I'll raise my stop along the way. If the market looks nasty again tomorrow, I might just wait it out and see how DE behaves. Could drop.