Caution on the breakout HDlong term trend is bullish but slightly weakening
ascending triangle forming above MA-
negative volume pressure is underlying may lead to a weak breakout
thinking it may be a false breakout possibly trade down to 155.13 where there's least resistance
also might try to complete head and shoulders pattern down to neckline
HDI trade ideas
The Home Depot, IncIn 2016 shares of The Home Depot rose only 1.38%, while the Dow rose 13.41%. The company showed one of the worst growth results among the "blue chips". Due to the market expectations of growth of housing assets in the United States in 2017-2018 the company expects to exceed revenues of $ 100 billion in 2018.
Next month, the company will report in the fourth quarter, analysts predict that the growth of the rate of profit / share by 13.6% to $ 1.33.
Last week shares of The Home Depot showed a growth of 0.87% against the SP500 down 0.24%.
If the price is consolidated above 135.35, long positions can be opened with the targets at 136.10, 136.85 and 137.60. Stop-loss should be placed at the level of 134.60.
HD: Short the topWe have a good opportunity to take a short here, risk is $5.91 per share, so factor that in when sizing your trade. I'd reccomend 0.5% exposure here. Earning 1.1% per quarter, with a modest 3% free cash flow yield, valuation up here isn't good.
Good luck if shorting it.
Cheers,
Ivan Labrie.
HD Looking Bearish headed into earningHD tends to sell off coming into earning, so it's not surprise that HD is looking more bearish than bullish with earning in a couple weeks. A close below the 122.01 support look for the retest for possible bearish entry. !22.01 is a strong support on the weekly, but then AGAIN SO WAS 123.50 (NECK LINE ON a triple top on the weekly). Yesterdays bullish candle looks like the retest of that neckline. If you look back to the pink arrows are areas that HD broke down very aggressively, right around the 126 range. My plan is if HD gaps up anywhere under 122.86 I will look for a reversal to the LOD prior day and look for a trade to TGT. IF HD gaps down wait for a retest where the arrow is.
However one candle could make this a decent buying area.
Home Depot - Except Bullish 4 Rest Of 2016"W PATTERNS are call patterns" well "M PATTERNS are put patterns". As you notice on chart with PA two "W patterns with price action pattern. *If you go back on this chart to Oct- Dec 2015- bullish trend happened too. I expect for long term trend to be bullish, with some corrections or retracements along the way. Major support area of 125.00 shows a double bottom pattern now. Remember price action or what is going on right now is key, plus trend trading.