Deere and Co (DE) recently gapped down on earnings breaking through some key support and challenging its previous uptrend.
GAP REVIEW
On May 15, 2013, DE gapped down taking out the $90.00 support level. The stock immediately sold off and pressed down into the $88.50 short-term demand/support level.
KEY LEVEL
DE has a key level of overhead supply now after the gap down on earnings. Overhead supply level is into the $88.50. Key demand exists at $82.00. These levels give us a guide of risk to setup a nice swing trade.
THE TRADE
Any bounce back up into overhead supply at the $88.50 area is a nice entry for a swing short. The stop would be over the $90.70 and targets would be $82.00.
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