Home Depot (HD) - Advancing $67.50
Home Depot (HD) Retail / Wholesale - Building Products
Purpose of this Analysis:
> Identify the stage in which the stock is trading.
> Identify key levels of Resistance & Support.
> Analyze technical indicators that may provide insight to direction of stock price.
The 4 Market Stages are: Basing, Advancing, Topping & Declining
- Pivot Point is $66.02 Current price is $67.50
- Next Overhead Resistance is $68.15
- Trade above $68.15 will set new highs
- Recent pullback held $65.00 support
- Trading ABOVE 20-day Moving Average (dMA)
- Rising Relative Strength Index (RSI)
- Positive MACD (momentum indicator)
- Above Average Buying Volume
- Trade below $65.00 would be negative with next support $62.50
Pivot Point: The price that is $0.10 (10 cents) above the most recent resistance (intra-day high) within its base.
Definition of a Breakout: The stock achieves a higher price greater than previous resistance on surging volume of 2x greater than normal daily trading volume.
Stop Loss Protection use ALL TIMES to minimize loss from initial purchase price as well as move stop limits up during advance to lock in gains during pullbacks. Genearl Rule: stop limit no greater than 7% below purchase price with purchase price no greater than 5% above pivot price.
Material is provided for EDUCATIONAL & EVALUATIVE purposes only and does not constitute a recommendation or endorsement to buy, sell or hold with respect to any security or investment. Chart reading is an interpretation and subjective process. There are no guarantees the stocks presented will perform in the manner of the interpretation as many factors can affect performance.
Chart courtesy StockCharts.com Composed by SelectiveChartists