HOME34 trade ideas
HD short term bearishHD is in uptrend but in short term show bearish.
Price maybe decrese to trend line.
HD LONGHD has held up fairly well during this
market turmoil. I look for a retest of the
highs on this stock. Both the Acceleration
Oscillator and Awesome Oscillator are green on
the weekly showing that price is in the zone. If this
trade is triggered my stop would be below the alligator
blue line
DOW JONES OVERVIEW: HD HOLDS MACRO UPTRENDOn long term basis, Home depot holds uptrend - price is trading above 1st standard deviations from 5- and 10-year means.
On short term basis, price is trading laterally - it is trading within 1st standard deviations from both 1-year and quarterly moving averages.
Moreover, current short term lateral range is outlined by the 1st standard deviations from quarterly mean (111-118)
Thus investors willing to take positions with the macro trend should look for pullbacks to the lower border of the short term lateral range
May have more upside potential, but it could be limited$HD is showing strength in a consolidating market and making its third attempt to break the 118$ resistance zone.
Right now, 118$ is a strong resistance that may hold and send the stock back down to test the bottom of the rising channel you see in the chart.
If $HD breakout attempt will be successful and the price will close above 118$, it may rally towards its broken uptrend line, there the price will meet a very interesting sell zone that I intend to monitor closely towards earnings (coming in two weeks).
The zone 121-123$ is a potential sell zone with bearish Butterfly completion and Fib extensions confluence range.
The initial target zone for this bearish scenario is 118$ (current resistance that should become support in that scenario).
My secondary target, should the price close back below 117$, would be the daily 200 SMA line, near 110$
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Continued Review of the possibilities in Home DepotSeeing the way the MACD and MFI is acting, I would say there is significant risk to the downside. However if you are already long from the recent low, then I would probably look for a continuation of the more obvious trend
Could we see a retest of the recent large red candles midpoint? Possibly. And then either re-enter the bearish channel or chug through the volume zone overhead. There is also a candlestick pattern below.
I'm not in a trade atm, but I wan't to see how this turns out...
- If you want to get short, perhaps look for a better Risk/Reward ratio with a new bearish candlestick formation
- If you want to be long, you should have been in on the bullish candlestick pattern or on the Stochastics signal for a better Risk/Reward ratio
- *If* you are willing to risk it and commissions are not too high, you may be able to get a dollar in either direction with a very tight stoploss under/over the last printed candles wick or, should you like it better, over/under the low/high of the red candle we had before the last big red one.
HD Day Trade Retest Gap (Brad Reed May19,2015)If HD opens above 116.24 consider using the Retest Gap strategy. To get a free and complete stock trading education go to www.RealLifeTrading.com
HD $114.47: Rallies to form a 3-week rising channelHD rallied off the 106.62 low (April 30, 2015, near the 38.2% retracement of the 86.35/117.99 rise), forming a 3-week rising channel. Further gains open the 116.24 (April 9, 2015 lower high) ahead of the 117.99 record high (March 20, 2015). 110.83 (May 14, 2015 low) serves as the immediate support. A breakdown there is needed to dampen the bullish momentum and reopen 106.62.
Outlook:
Short term: bullish
Long term: bullish
Momentum indicators improving, BB's opening up into earningsWeekly 115 calls active, straddles looking for $3.65 move this week
Just getting out some thoughts on HD I'm guessing more downside. I currently have a corrective W4 in a extended w3 and should fall with even more downside after W3 completes. W4 invalidation occurs around $111.72 area and I'll have to reassess. .
50DMA bounceThere's a clear uptrend on the weekly chart although I don't think we will be resuming it just yet without further consolidation in the short term.
Open 2 positions for the two main targets. Move stops to protect positions once price has cleared them.
Good luck!
Home Depot - Slowly trending higherA glance at the weekly chart and one thing is obvious. When HD starts trending, it usually lasts for a long time. As highlighted on the daily chart, there is a very long consolidation that took place in 2014. This should provide thrust for further gains.
On the daily chart, the Force Index is oversold, and we have a corrective double bottom which, for a stock that moves slowly like HD, is a perfect entry signal. The impulse is still red, but on Friday we have a bullish engulfing candle. Price will probably gap higher on the open, turning the impulse from red to blue.
HD - Intra- Day Double Top & Wedge break (Daily)1-25
HD- See my post from 1-9-15
Check hourly ! Nice double top forming- Intraday entry close below 105.12 or on the retest- stop 106.24
Targets 103.598 intraday / swing target 2 100.38
If HD closes below 100.00 could be a nice bearish trade
Earnings 2-24
If HD GAPS UP OR TRADES 106.99 More bullish than bearisish
HD- - Rising wedge - looking for bearish break1-9 -15 New trade -
14 days ago I posted the previous chart stating if HD closes above 104 (it may hit bullish targets ) , but look out for a pullback becuase of the ascending wedge. HD traded to the top of the wedge and has given a bearish engulfing on 1/9 . If market continues bearish there could be a nice trade devloping if HD trades below 100.36 Target 96.28 and 87.86. There may be a trade within the wedge but I'm waiting for a close below 100.36 or looking for a bounce bullish above 100.36.
HD The Home Depot getting a trimmer for ChristmasTaking a little off the top at the psychological level of $100 with excess supply, lo demand, distribution & pro active selling signals. High average trade size today indicates trading desks were active. I didn't check LOW yet as it is not a holding. Just managing risk and will use an option strategy also. Targets noted. This may play out in January. Time to be a boy scout (be prepared).
Home Depot - Bearish divergence and no demand barHome depot seemed like a good sell two weeks ago. Now it's even a better sell. Explanations on chart. I have not decided yet if I am going to take this trade.
Bullish Triangle or trend line breakdown? 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
