We must have a look at the Bearish perspective on HD as we go into the much anticipated retailers earnings reports this week. Spring is like christmas to Home Depot, home improvements , and in particular planting season for gardener, this year however, mother nature has not been kind which will have a impact on earnings. Secondly, longer term is it possible the end is in sight for this economic cycle, house prices have started to stagnate and HD is very much dependant on continued homes sales . Home depot is also very highly leveraged with debt, which has been overlooked as growth and revenues have increased, this will be to the forefront if growth stalls.
From a charting perspective, things to consider= We could still be in correction and entering into the C wave RSI uptrend has broken since early may B Bands signal downside risk 7/12/26 mas all negative. Possibility of a major H&S forming from Jan 18