Home Depot was downgraded ... it's already down about 1.3% pre-market.
Looking at the 4 hour chart, HD has been in an ascending channel since December of last year. It recently bounced off channel resistance, and this downgrade might cause it to fall to channel support.
In addition to the channel, notice that the RSI is overbought. Combine all that with the...
The price above 200 MA, indicating a growing trend.
The MACD histogram is above the zero lines.
The oscillator Force Index is above the zero lines.
If the level of resistance is broken, you should follow the recommendations below:
• Timeframe: H4
• Recommendation: Long Position
• Entry Level: Long Position 222.60
• Take Profit Level: 226.60 (400 pips)
Earnings are coming up ( be careful not to get caught gessuing).
IF EARNIGS DO NOT EFFECT THE MARKETS.
I see a potential short into a bigger cluster of buyers and sellers @195 and ultamately bouncing and following the trend upwards. I would keep this on the watch list.
IF EARNINGS ARE GOOD ***
I would buy calls and stock for long term investments as fas as...
HD stock make a pullback on an uptrend toward 20 MA
- Price respect 20 MA and bounce
- A bullish candle confirmation
- Price also retest last resistance that became support at $211
(This price target are used for HD option swing trade )
What goes up, must come down. While this is not always true in this world, it's much more likely than not that a parabolic movement will eventually see a sharp, then lengthy, dwindling correction before it continues upward. This may seem like a crazy chart, but there are some unavoidable signs that the housing market is slowing down. Some experts are now...
As you can see in the graph above, we have Head And Shoulders Pattern, in one sentence which indication gives us? a head and shoulders pattern describing a specific chart formation that predicts a bullish-to-bearish trend reversal.
For this reason, we recommend a sell signal with a target of 170.
We anticipate a right shoulder completion no later than end of q3 2019, followed by a move down to the solid black trendline illustrated in our previous post (1985 to present). Eventual weekly chart target: ~$138.
Patterns observed in various homebuilder stocks, not limited to Home Depot, run concurrent with anticipated cyclical moves in US and International housing markets. A move down to the solid black trendline, within 2 years, would validate our overall macro view.
Home Depot might break out if it makes it past the first yellow line. It will easily breakout to $203 if it passes the second yellow line***. I'm banking on HD making it to $225 within a month.
These estimates based on the C&H, H&S, and Historic floor/ceiling.