MountainTraderFX
Short

HOME DEPOT DOUBLE TOP +HEAD AND SHOULDERS FORMING- SHORT

NYSE:HD   HOME DEPOT INC
HOME DEPOT has bounced down from the double top all time high level.

Also, there is a strong daily level exactly where the stock price is trading right now.
One might find a reverse head and shoulders pattern forming, with a current expected move down creating the right shoulder.

The target is a strong horizontal structure support level.

Don't forget to hedge with long weekly calls when leaving position overnight to eliminate the gap up risk. Don't hold the options during daytime. Or just have your stop loss in form of options, if the price is right. This is more that a one week trade however, so monthly options as the most suitable.

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Wish you all best of luck in your trading!

Comments

Its right there...but the correlation with S&P 500 is quite strong & its holding it back. Just a matter of time
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Great idea, i see major resistance at 249.73, it will bounce down after towards the 220's. Im thinking to long call it to 249 (Market is in an uptrend this week) then short it towards the support levels. What's your feedback?
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@saab444, I am not sure about being long calls, but having puts at 220 seems a great idea. And the mkt seems to be unable to beat the double top.
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I am waiting for a confirmation. But yeah, interesting idea.
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MountainTraderFX WellingtonHill
@WellingtonHill, thank you!
Reply
I am short too. With monthly puts. Let’s see how it goes.
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DamascusMerchants FlexTradingPro
@FlexTradingPro, same here! Puts are very cheap.
Reply
MountainTraderFX FlexTradingPro
@FlexTradingPro, lets see!
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What do you think guys? Tell me!
Reply
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