Deer & Company security may see a decline due to some fundamental and technical factors.

The company has recently published its fourth quarter results that surpassed estimates, but it dropped comparing to the previous period and the company lowered its 2015 guidance. It announced that its annual net income will drop about 40 percent. In fact, agriculture and turf equipment fell 13 percent in fiscal year 2014 and it expects them to drop 20 percent in the next one. It said that it would cut production in response to weak sales.

Technically, the stock is trading on a neutral trend on all time scales. Prices rebounded on contact with the USD 84.55 support, but dropped close to the USD 88.65 resistance, tested once again. The 20-day moving average is down oriented on weekly data and should support the bearish movement.

Thus, in order to take advantage of this bearish scenario, most offensive investors should open a short position on Deere & Company security. The target will be a return to the USD 84.55 pivot point then the USD 82.20 short term support. However, this strategy should be protected by a stop-loss order over the USD 88.65 resistance, in case of a bullish scenario.