Pull Back Fishing Cup & HandleFollowing some rules, as I have seen many, HD has negated a cup and handle pattern because price has fallen below the handle low and it is not below mid cup which is 322.04. The handle low is 316.61. There should be a lot of support between these 2 levels, as both mid cup and the handle low provide a form of support. The pull back at earnings may have made this a safer trade.
The moving averages are in chronological order with the 20 on top, but the 20 is looking a bit droopy with price underneath it. The longer term SMAs are sloping up indicating for now, price is in good shape long term. Moving averages are lagging indicators compared with price, which is what is going on in the present.
Negative volume is high showing smart money interest. Short interest is very low.
I watched this fall out of the rising wedge on hourly yesterday, as there is also a rising wedge on hourly but this is a daily chart. It did not fall far and price recovered at 323.11. I am hoping it has corrected but could be shaky for a bit so long entry level can be paramount. No way to know for sure.
No recommendation.
When a wealthy trader with no experience meets a seasoned trader with experience, the rich trader walks away with the experience and the experienced trader walks away with the money.
