MOLINE, IL – Deere & Co. (NYSE: DE), the iconic agricultural and construction equipment manufacturer, saw its stock hit a significant downturn on Thursday, June 13, falling sharply after a midday rally failed to hold. The sustained selling pressure that followed has established a bearish technical picture, leaving investors on edge and questioning if more downside is imminent when the market reopens on Monday.
This in-depth analysis of Thursday’s trading session breaks down the critical signals for Deere & Co. stock.
Thursday’s Trading Recap: A Rally Rejection and a Steep Decline
Deere & Co. stock closed the session at
7.27 (-1.41%). The intraday chart reveals a classic story of seller dominance:
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Gap Down Open: The stock opened at $513.00, already significantly below its previous close of $516.86, indicating immediate negative sentiment.
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Failed Morning Rally: Buyers attempted to push the stock higher, reaching a daily high of $516.40. Critically, this peak failed to surpass the previous day’s close, a significant sign of underlying weakness and strong overhead resistance.
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Sustained Afternoon Sell-off: After being rejected from the highs, the stock entered a steep and persistent decline for the rest of the day, showing a clear lack of buying support.
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Close Near the Low: The stock hit its daily low of $507.73 late in the session. While it bounced slightly to close at $509.59, it finished much closer to its low than its high, a classic sign of bearish control.
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Flat After-Hours: The stock remained unchanged after the bell, indicating a pause in activity but no reversal of the negative sentiment.
The Bear Case: Why DE Stock Could Continue to Fall
The technical evidence from Thursday’s trading is overwhelmingly bearish, suggesting a high probability of further weakness:
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Rejection at Key Resistance: The failure of the stock to reclaim the previous day’s closing price is a powerful technical signal. It shows that sellers were in control and prevented any meaningful recovery.
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Weak Close: Ending the day near the session low indicates that bearish momentum was strong into the close and is likely to carry over into the next trading day.
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Significant Daily Loss: A drop of 1.41% on a blue-chip stock like Deere is significant and can shake investor confidence, potentially leading to further profit-taking.
The Bull Case: The Long-Term Perspective
Despite the very weak daily chart, bulls can look to the company’s fundamental strength and long-term performance:
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Industrial Behemoth: Deere & Co. is a global leader and a pillar of the industrial sector. Its brand and market position provide long-term stability.
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Long-Term Uptrend: The stock is still trading significantly higher than its 52-week low of $340.20, meaning the long-term trend remains firmly positive. Sharp pullbacks are common within major uptrends.
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Reasonable Valuation: With a Price-to-Earnings (P/E) ratio of 24.66, the stock is not in extreme valuation territory, which may attract value-oriented buyers on a deeper dip.
Key Levels for Traders to Watch on Monday
The battle lines for Monday’s session are clearly drawn by Thursday’s price action.
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Critical Support Level: $507.73 (Thursday’s Low). This is the most important level for bulls to defend. A decisive break below this price would confirm the bearish trend and likely lead to an accelerated sell-off.
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Key Resistance Level: $516.40 (Thursday’s High). For the outlook to improve, bulls need to stage a significant recovery and push the price back above this point of rejection. Until then, sellers hold a clear advantage.
The Verdict: Is It Right to Invest?
Based on the potent technical signals from Thursday, the immediate forecast for Deere & Co. stock is bearish. The failed rally, sustained sell-off, and weak close are all strong indicators that the path of least resistance is lower in the short term.
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For Short-Term Traders: This is a clear warning sign. Initiating a long position would be very risky until the stock proves it can find support and reverse its momentum. A break below $507.73 would be a confirmation signal for bears.
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For Long-Term Investors: This drop could be the start of a healthy correction and a better buying opportunity. For investors with a long-term belief in Deere’s business, it may be prudent to wait for the selling to subside and for a more stable price floor to form before adding to or initiating a position.
Traders should approach Monday’s session with extreme caution. The bears appear to be in control.
