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
Tim
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
Tim
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