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How to Trade Deere in Bear Market Territory

Deere (DE) , the manufacturer of agricultural equipment, will report quarterly earnings before the opening bell on Friday. The stock is in bear market territory and is oversold according to its weekly chart.

Despite a string of 14 consecutive quarters of beating analysts' earnings-per-share estimates, Deere is 21.2% below its June 30, 2015, intraday high of $98.23. The stock is 10.4% above its 2016 intraday low of $70.16, set on Jan. 20. The daily chart shows the Fibonacci retracement levels of this decline.

The weekly chart shows that in the longer term, the stock failed just below or just above $95 a share several times since early 2008, including the latest 52-week high. The weekly chart also shows how the 200-week simple moving average has been the reversion to the mean since October 2008.

Deere is expected to earn 95 cents a share for the quarter ended in July. Some say that the company's turnaround is not too promising. Warren Buffet's Berkshire Hathaway (BRK.A) (BRK.B) owns shares of Deere as one of its top 10 dividend stocks of 2016...