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
Comments
Nickmail
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check your chart - it still in a uptrend but has 4 signals of bearish divergence/// need to work it out// get ready
oops
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I think you got robbed Tim. It looked toppish and perhaps too much noise with M&A rumours around HomeDepot ? Whats your action plan now, playing again a possible broadening formation instead H&S ?