Home Depot (HD) top formation

BATS:HD   Home Depot, Inc. (The)
The rally in economically-sensitive housing stocks has bordered on EUPHORIA from my perspective and now that there is evidence of strong distribution of shares, there is reason to suggest that a further correction amounting to 15% may occur over the next three months.

Expect violent rallies after each level of support is broken. This is typically the case after a stock has had such a strong, steady gain.

There are 10-days of trading action at 67 and 13 days at 67.50 so that is the most important resistance besides the gap-resistance at 66.50. There are 8-days of trading at 66.50 which is roughly today's high. Any of these levels should keep a lid on HD shares.

Risk $3/sh. Reward $9.

1:27PM EST Mon, Feb 25, 2013

Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.