HD, This Formation Is The Crucial Factor For Futher Outcomes!

Hello Traders Investors And Community, welcome to this analysis where we are looking at the stock value HD 4-hour timeframe perspective, the current formation and what to expect from this stock the next times. Although HD has formed some new highs it is struggling at the moment as the volatility gets extremely low and the price weakens it can be possible to reverse, in such environment it is important to note that there are stocks which gained strongly out of the corona crisis and stocks which showing bearish signals, as HD has shown some bullish signs this can reverse to the other side now therefore I detected some important signs to consider which will determine the further outcomes.

Looking at my chart you can watch there that HD has formed this huge possible rising-triangle-formation which is marked in blue where the price already severaly touched the lower and upper boundary within its low-volatile movement, what is important is this movement as it gets slower and slower here the price struggles to advance, such movement can suddenly reverse which is also playing into the rising-triangle-structure the stock is building up here. This triangle will confirm when the price closes with a volatile move below the lower boundary and therefore confirms the triangle, a continuation to the downside will be highly possible and should be considered when this happens.

When the more likely bearish scenario plays out here the stock will look for remaining supports which is firstly the 100-EMA marked in red which is a possible support that can hold and when it does not the next support will be at the 300-EMA marked in black, in these levels the stock can reverse and possibly continue bullish on the middle or even on the long-term but this has to be confirmed rightly. Although a immediate aggressive approach is also possible here such formation can be traded best possible with a confirmation of the whole triangle-formation with a close below the lower boundary and cotinuation, it will be highly interesting how this is playing out in the current structure.

In this manner, thank you for watching, support for more market insight and have a good day!
“The fundamental law of trading is the forecast of the future.”

Information provided is only educational and should not be used to take action in the markets

Comment:

ANALYSIS UPDATE: HD continued to complete the ascending triangle with a bearish breakout reaching all of the target zones.

Since HD bounced within the 300EMA it marked the decisive reversal determination to accelerate the price action dynamics.