HDI trade ideas
HD looking good i like the come HD showing from all times lows it made a %50 retracement but they are not out the woods yet would like to see a 61% or 75% retracement first
HD: RECTANGLE PATTERN AND FULL TECHNICAL ANALYSISHD ( HOME DEPOT ):
Consumer Cyclical - Home Improvement Retail.
Home Depot is included in the Down Jones Industrial Average.
My technical analysis on the stock:
The current downtrend took the stock 37% of its all time high of January 2022.
On June 23, HD initiated a strong bounce to $333 off the $265 level.
On August 17, HD initiated a huge drop back to 265, to bounce back again to the 330 zone where we currently are.
The stock is currently down 22% off its all time high.
Is this a buy?
No one knows, but let's look at technical analysis to help us make a decision.
As we see from the chart, the 265-269 zone is acting as a strong support while the 328-333 zone is acting as a strong resistance.
All of the above has created a nice range in the shape of a rectangle.
A rectangle is formed when the price is confined to moving between the two horizontal levels, creating a rectangle.
The pattern can indicate a few things:
- that the downtrend has paused and the stock is now consolidating before a continuation down. So back at the bottom of the rectangle and break down.
- that the downtrend has stopped and we're looking at a change of trend. Kind of bottoming pattern. So basically it can keep ranging for a while and break to the upside OR break to the upside in the next few days.
The rectangle ends when there is a breakout, and the price moves out of the rectangle.
Considering the above there are several ways to trade it:
1. If you think the price will keep consolidating within the range, you can short the stock at the top of the range . Your target is the bottom of the rectangle, with a stop just above the rectangle.
2. if you have a more bullish view, you can wait for a breakout off the rectangle and go long the stock , with a stop below the top line of the rectangle. All targets are mentioned on the chart (blue lines). Rectangle ultimate target being $400.
I'm leaning slightly bullish here because moving averages have started to rise, and I like the triple bottom, but who knows. Whatever your opinion is, best is to manage your risk.
Trade safe.
Home Depot Short Scalp Rejected from resistance, and made LH with the bearish pin bar. I am expecting bearish momentum till the fib level and will see the reaction.
HOME DepotImagine the smell of this legacy stock pumping to $500 in 2023 only to get everyone thinking bear markets over then huge rug to $2. I don't make the rules guys.
Home Depot SELLHome Depot is currently sitting at $319.96
$319.50 is the first possible entry point for a short. However, a break of $317 will be a greater confirmation that the stock will push lower.
C+H into H+S as left shoulder is the top right side of the CupThis particular formation is something I seldom experience in my daily chart readings, but when it arises tends to guarantee a profit given this entry. First time I ever saw this I questioned, can two patterns be combined? I would have to agree. Proper confirmed entry would be at 328, as soon as I witnessed the potential first indication of a reversal of trend, a lower high in a previous uptrend. Another thing that added conviction was the appearance of larger than the other wicks in the formation of the H+S specifically that right shoulder. I entered Friday in this situation because of the conviction I had in regard to experiencing this formation previously. 5 min time frame is my preference for day trades. Hope this helps.
RectanglePrice has not broken the resistance line of the rectangle.
Rising wedges noted on daily and hourly. The bottom trendline of the wedge has not been broken.
Price is above the wedge
Rising wedges interrupt supply and demand and are known to be bearish in the end. This pattern is not valid unless bottom line is broken. It can be a long term pattern sometimes.
Possible W pattern also noted inside this rectangle.
No recommendation.
Possible Short at a good entry level.
Price is above the .382 of the trend up.
HD - could it break up soon?HD had been building a base for the past 9 months, forming a double bottom. It began to break above the 200 days moving average on 10th November and had sustain above this MA since.
Currently it looks close to attempting a break above a neckline @ 327. However with still much uncertainty and volatility in the market, it is safer to long the breakup with a test-sized position. Any pullback to retest the neckline could be a safer place to increase position size if the neckline proves to be a new support and trailing stops should be in place.
There is a chance the market could continue to whipsaw sideways for a while more until more economic data comes in.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
$HD with a Bullish outlook following its earnings #Stocks The PEAD projected a Bullish outlook for $HD after a Negative over reaction following its earnings release placing the stock in drift C with an expected accuracy of 50%.
If earnings beat is baked into price, then $HD goes downJust because last time price sold down after earnings, does not mean it will happen again.
What I see is that price is trying to close above upper downtrend line but 20sma is still below 200sma. Also yesterday price opened at the line and dropped. 316-318 should hold as resistance for a pullback into yellow oval.
The 30m chart leans bullish for now, because 20ma and price are over 200ma. Thus I am suggesting a counter-trend swing trade. Buy fewer contracts and be comfortable to hold. Trade design uses 30m chart, which shows downside targets of 305, 300, 200sma (296-295).
When you enter close to resistance/supply, then stop losses are close to buy price. This is one reason I enjoy counter-trend trades. Even better, put contracts cost relatively less when they are bought before the downtrend momentum begins (IV is lower).
My trade: I bought 11/25 305P for 3.42 when stock was ~315.70.
Double BottomEarnings 11-15 BMO.
Looks like HD broke up from a horizontal trading channel.
Possible Targets for a break down from the rectangle in orange type.
No recommendation.
Short interest less than 1%.
Gap below price.
HD daily bullish hammerOrder BUY HD NYSE Stop 286.47 LMT 286.47 will be automatically canceled at 20230401 01:00:00 EST
HD daily bullish hammer stop has to be deep, however exit should be quick since countertrend of downtrend.
HD: Double bottom?Home Depot Inc
Intraday - We look to Buy at 285.03 (stop at 271.38)
Buying pressure from 265.00 resulted in prices rejecting the dip. Posted a Double Bottom formation. The reaction higher is positive and highlights a clear reversal. A weaker opening is expected to challenge bullish resolve. Dip buying offers good risk/reward.
Our profit targets will be 328.98 and 340.00
Resistance: 300.00 / 330.00 / 418.00
Support: 285.00 / 265.00 / 150.
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HD making a bearish pushPrice action suggesting a push to the downside, price confirmed a close below the ascending secondary structure along with the 50 day SMA.
The ideal entry, stop and target have been identified on the chart image for your review.
Dead Cat Bounce on Home Depot. HDThat is what it appears like to us at this stage. Overbought on the daily, possibly a result of the ascending pennant (?A Wave) signaling a fair chance of a reversal now to the shown levels. The fact that this is another short idea should not be all surprising given the general pessimism on the markets right now.
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Confirmation level, where relevant, is a pink dotted, finite line. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe.
Is HD heading to 250?Looks like HD will hit 250 by end of this week or next week. I understand the hype about Hurricane but the markets are in turmoil and there is no way this heads higher and weekly shows one last draw down before recovering higher.
Hurricanes and Home RepairIt is time to put HD and LOW on your radar for two reasons. One I like how the technical complex looks and the other is the fact a major hurricane is going to rip into Tampa, FL (where I'm at), or somewhere into the U.S.
In that same breadth it is imperative that we keep an eye on the Oil Stocks such as OXY and XOM, of which, I will be looking at and posting shortly with levels.
I will try to link all of those charts together for simplicity purposes.
My support/resistance lines are represented with the horizontal lines. You can use those as targets and/or entries for positions based on bounces of those areas or rejections.
Home DepotI am currently long on Home Depot Options to return back to Supply Zone as we head into a Seasonal Pattern on this particular stock.
We Also have a Double Bottom in play on the 3 Day Chart..
Home Depot to continue the growth trendHorizon: 1-2 months
Target: $350
Technical analysis
The current correction reached more than 90% of the previous movement. Such values are standard within the uptrend and mark its continuation.
Fundamental factor
The Home Depot is an American retailer that is the world's largest retailer of repair tools and building materials. The U.S. Consumer Confidence Index averaged 103.2 points in August compared to 95.7 points in July. This indicates a shift in consumer sentiment toward secondary consumption (including repairs and construction), which may have a positive effect on the company and sales.
HD likely to head lower based on Elliott Wave, Other TechnicalsPrice / Trend
The proper starting point for technical analysis is always price , as many expert technical analysts teach. One major consumer discretionary stock, Home Depot NYSE:HD , has been trending lower since year-end 2021. It has made a decisive series of lower highs and lower lows. A trendline above the highs going back to December 2021 is easily recognized (green line on chart above).
Moving Averages
The 200-day SMA has stopped moving upward and price has cut below it. In the powerful market rally in the major indices ( SP:SPX and NASDAQ:NDX ) over the past two weeks, HD has failed to reach even its 200-day MA. Meanwhile the major indices and many stocks reached or even briefly recovered the 200-day MA.
Other key MAs (not shown for aesthetic purposes) are bearishly stacked and downward sloping on the daily chart including the 50-SMA, 34-EMA, 21-EMA and 8-EMA. Further, the 50-EMA, 34-EMA, 21-EMA and 8-EMA are downward sloping on the weekly chart, which provides an even stronger bearish trend signal.
Elliott Wave
After some time spent mapping out a plausible Elliott Wave scenario—starting at the pandemic lows in March 2020—HD appears in the midst of a corrective move.
First, at the all-time high of 420.61 on December 6, 2021, NYSE:HD completed its 5th wave up from the pandemic lows in the larger degree of trend. The next question is whether the current move downward constitutes an A-B-C correction or the beginning of new longer-term downtrend comprising 5 larger waves. This remains unclear.
But whether the current downtrend is an A-B-C corrective move or the beginning of a longer-term 5-wave impulse move, the pattern has more downside to complete.
Assume the current downtrend is forming an A-B-C correction of the longer-term trend
Assuming conservatively that the current downtrend is forming a corrective A-B-C pattern (a countertrend to the larger uptrend), only the A and B waves have completed. The C wave has just begun.
In an A-B-C corrective pattern, the sub-wave structure is motive (5-waves) within the larger A and C waves and corrective in the B wave. (This is because the sub-waves are impulsive / motive 5-wave moves when moving the same direction as the trend of one larger degree—and here, the trend of one larger degree for the A and C waves is downward, correcting the 5-waves uptrend from the pandemic low.) This is evidenced by the 5-wave structure shown in for the presumed A wave (between December 6, 2021 and February 24, 2022).
Assume the current downtrend is a 5-wave impulsive move starting a new longer-term trend
The current downtrend from the ATH on December 6, 2021 could be the start of a new motive 5-waves downward, having completed Wave 1 (with sub waves 1-5 shown in blue) and Wave 2 (with subwaves shown in purple). If this scenario is accurate, then the next wave that has begun to form would be wave 3, which typically is the longest of the 5 waves. This scenario seems less plausible given the strength shown in the major US indices lately, and the fact that the boats (stocks) tend to follow the tide. However, it's prudent to consider all possibilities, and this remains a plausible scenario.
Fibonacci Projection
Using Fibonacci levels, the first portion of the downward move (from December 6, 2021 to February 24, 2022) can be projected from the March 18, 2022 highs. The 1.00 extension level equals 219.42. At this 1.00 extension level, the two legs of the entire correction would be equivalent in length, a frequent occurrence in highly liquid securities trade on major exchanges. For the next 2-3 months, a reasonable downside price target is first 265 (at the .618 extension) and then 220.00 (the 1.00 extension).
Ideal Trade Trigger
For a bearish position, the setup would be to wait for a bounce to the 21-EMA or 34-EMA on the daily chart. Because HD failed to reach its 200-day SMA on on the recent extraordinary rally in the major indices March 15-29, a retracement to the 200-day SMA is unlikely to occur.
Another option is to wait for HD to retrace to its last swing high on March 29, 2022 at 321.00. If HD remains cannot break that resistance level, then that might provide a good entry for a short with a stop at 321.00.
Momentum
Daily RSI shows momentum never recovered above 57 on the rally from Feb. 24, 2022 to March 18, 2022. RSI then failed at its 8 EMA on this chart and is trending down with a series of lower highs. My other momentum indicator, the Squeeze, shows that volatility is expanding on the current move downward along with negative momentum, which signals that the volatility will increase with downward price movement.
Home Depot Pulls Back After Strong ResultsHome Depot rallied after a strong earnings report last week, and now has pulled back.
The main pattern on today’s chart is the high-volume bullish candle following quarterly results on August 16. The home-improvement chain jumped to its highest level in almost five months, only to stall and drop for five straight days. It then tested a weekly low above $303 before bouncing on Wednesday.
Next, the $303 area is potentially important because it’s slightly above the $298 level that HD has been trying to hold most of the year. (It was originally a low from June 2021.)
Third, TradeStation’s custom script 2 MA Ratio shows how the eight-day day exponential moving average (EMA) has remained above the 21-day EMA despite the recent drop.
Finally, stochastics have fallen into an oversold condition.
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