Interesting setup in $HD after strong rally that the stock had in recent weeks.
We saw double top pattern at 93$ resistance zone and yesterday the stock broke below minor support level (now resistance) that held it for almost a week.
As long as $HD below 92$ (the minor resistance) we may see the stock attempting to break below the uptrend line shown in the chart.
The other scenario is that we are looking at bullish Triangle here and a breakout above 93$ could lead this stock all the way up towards 100$.
If we look at volume, we see increase in volume on the down days - Bearish sign.
Monitor that trend line - Breakdown could lead to gap closure.
Price action - We see two reversal patterns in 93$ - PinBar and Outside Bar.
Read my newest article at the MarketZone website about Price Action:
www.themarketzone.net/
We saw double top pattern at 93$ resistance zone and yesterday the stock broke below minor support level (now resistance) that held it for almost a week.
As long as $HD below 92$ (the minor resistance) we may see the stock attempting to break below the uptrend line shown in the chart.
The other scenario is that we are looking at bullish Triangle here and a breakout above 93$ could lead this stock all the way up towards 100$.
If we look at volume, we see increase in volume on the down days - Bearish sign.
Monitor that trend line - Breakdown could lead to gap closure.
Price action - We see two reversal patterns in 93$ - PinBar and Outside Bar.
Read my newest article at the MarketZone website about Price Action:
www.themarketzone.net/