Th market stalling out a bit last week has led many to question whether the bull rally will continue or not. However, until then, there are still some stock that have quality set ups that we can use to make a great trade.

One trade idea that comes to mind is brought to us by Deere (DE). The stock has formed a trend channel with the channel support being tested last week, as you can see in the video. A break below that line, and 400, likely means lower prices for the stock.

Unless the market decides to make another run higher, this 400 level is the level to be watching for a possible short play. If you think this is part of a pullback in the context of a market that wants to go higher, then 400 may act as support again with the stock pulling back to it, only to continue to move higher.

Learn tons more about our favorite stocks and setups when you join The Profit Machine. Every week, you will get exclusive access to all things option trading, from the stocks I trade the most to the setups I look for when trading them. The best part, we are putting on trades every step of the learning process, so not only will you get a world-class education, but you’ll also earn while you learn.

Get a jump start on your options education and put yourself in position to win in 2023. Sign up today! Until then…

Good Luck!

Christian Tharp, CMT