HD looking to continue moving to new highs?
I last spoke about this around mid October as it was breaking out of from $342.15. Since then it rallied higher and then consolidated for 3 weeks. This consolidation also created a base on base pattern.
Now it's breaking out of the consolidation as earnings approach. The best part about this is that it was consolidating as the general market was in a small correction. This shows that there is institutional demand for HD and earnings may give another leg higher.
Trade Idea:
* Now's the perfect time to enter as the price is right above the broken resistance.
* Very favorable risk/reward ratio.
* If you're looking for a slight discount you can look for buying opportunities near the $366.48 area as that is the base of the tight range.
* Looking at the weekly chart this may continue to consolidate but with earnings coming up I can see this moving higher from here.
Now it's breaking out of the consolidation as earnings approach. The best part about this is that it was consolidating as the general market was in a small correction. This shows that there is institutional demand for HD and earnings may give another leg higher.
Trade Idea:
* Now's the perfect time to enter as the price is right above the broken resistance.
* Very favorable risk/reward ratio.
* If you're looking for a slight discount you can look for buying opportunities near the $366.48 area as that is the base of the tight range.
* Looking at the weekly chart this may continue to consolidate but with earnings coming up I can see this moving higher from here.
Comment:
Earnings report will exceed expectations.
