In May we recommended DE, after a small pullback it could be ready to run again, writes John Rawlins.

While it may be a little risky to take a technical/cyclical trade in an industry related to agriculture given the on again/off again nature of US-China trade talks. We wanted to share an interesting QuantCycles set-up in Deere & Co. (DE).

Deere has been in the midst of a sharp up move since mid-August, which has resisted a long-term QuantCycles Oscillator predicted correction (see chart).

de w

The correction is expected to last for another week before the oscillator predicts and even greater up move.

The current direction is confirmed by the daily oscillator, as well as the larger up move (see chart). 

de d

The only question for traders interested in DE, is whether to try and get short for a brief profit or wait for some selling to come in and get long at support around $160 to $165.

While one may be cautious with any trade in an ag-related stock, we must point out that the QuantCycles Oscillator has a strong track record in DE, having recommended traders go long on DE on May 23, just before Deere rallied 25% over the following two months.

John Rawlins described the value of the QuantCycles Oscillator recently at The Orlando MoneyShow.

The QuantCycles indicator is a technical tool that employs proprietary statistical techniques and complex algorithms to filter multiple cycles from historical data, combines them to obtain cyclical information from price data and then gives a graphical representation of their predictive behavior (center line forecast). Other proprietary frequency techniques are then employed to obtain the cycles embedded in the prices. The upper and lower bands of the oscillator represent a two-standard deviation move from the predictive price band and are indicative of extreme overbought/oversold conditions.