HD trade ideas
Bullish: Breakout Expectations (Beta)Trade Plan,
Target price @ US$293 (Previous High)
Stop loss a@ 274.50 (Below17D SMA)
Technically,
Stock is consolidating within a triangle pattern with expectations of bullish breakout.
Fundamentally,
Beneficiary of Work from home trend and a recovering economy. PE at 25.8x and Div Yld at 2.15%.
Company Background,
Operates 2,291 home depot stores offering building materials/home improvement and lawn/garden products.
HD 4 hr descending triangle NYSE:HD with a strong descending triangle pattern on the 4hr. I am looking for a breakout above the resistance trend line and using the previous 3 supply zones (where HD previously tested the downward trend) as points of TP/continuation confirmation. While I anticipate a bullish breakout, it should be noted that a breakdown below 260 on the demand base has significant room to the downside. I would be very surprised if we actually see a break below this demand, but could see us testing again before making a breakout push. If we do test the 260-265 demand again, there appears to be great value in playing a bullish bounce off 265.
Short on open: 272.18 or higher
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Home Depot - Potential for break outHome Depot is currently trading near its 21 day EMA. Bulls will need Home Depot will to push through the 21 day EMA resistance level to take the stock up to its recent high. Although we see a double bottom, which is known to be a bullish reversal pattern, please be aware that this chart can also be interpreted as seeing a simple price consolidation pattern, such as a wedge or triangle pattern. We will be monitoring Home Depot this week to see if it breaks above the 21 EMA.
IRON TARIHi guys,
this is a new iron condor to set, 4 weeks with 10% strike
So our short legs are @ 256 and @ 313
We have 80% probability of success, so a rew/risk 100-80/80= 20/80 = 0.25
Depending on the size you can trade, and the spread of the 2 verticals, we can reach a Rew/risk of about 0.37, that is 50% more than 0.25.
The preminum is not that much, but we have a very high succesfull rate at our side, plus we can always roll on leg is the things go bad to lower our risk. Using a wider spread the odds increase more, because there is more room for the price to move before to reach the maximum loss, even if in this case we can always close the leg before expiration, to lower the loss.
Enjoy your wallet!
Tari.
Massive downside risk to Home Depot & Lowe'sI think the all time highs for these 2 stocks are behind us and they should only head lower from here. Ive observed a repeating pattern for both these stocks which tell me a trend change is forthcoming
Home Depot Inc (HD) - Sell on bounce Home Depot Inc (HD) it has completed impulse cycle upside as mentioned in previous updates. Now it is in correction mode, which might unfold in WXY complex correction as double zigzag may be. So wait for X wave to finish around 283 or little higher. Thereafter wait for impulse down cycle in 5 min time frame to confirm the start of Y wave down. Enter then only in trade with stops above X wave high for target zone around 248 or lower.
The fall should be sharper expected.
HDHD resistance at price 292.76
Buy zone at 280.33 and retest resistance with two outcome
1. pullback and make triangle
2. breakout the resistance
Cup and HandleHD is back on the trail again..pull backs do happen so looking for an entry point that feels safe
HD is in a long term uptrend
HD Fell a short distance from a rising wedge a while back and seems to have recovered.
DIA was not in a rising wedge like the other indexes. The Dow may be a good place to focus
Not a recommendation
Home Depot pulls back to the 13 EMAHome Depot ( NYSE:HD ) is pulling back along with the Dow today and is finding support at the 13 Day EMA as shown on the chart above. Could this be a pullback trade? I would like to think so, but as the SPY soars to new highs, we continue to be in an overextended market. I think Home Depot has the potential to continue higher provided that the SPY or DOW doesn't sell off. Even though SPY is made up of many other companies that have nothing to do with Home Depot, there is still market risk (also known as beta risk, systematic risk, undiversifiable risk) which is the risk that the stock will move along with the broader market.
I will continue to monitor Home Depot to see if today's idea was a bullish pullback trade.
HD - could a real pullback begin? swing putsI have been watching this stock for a while, and this is possibly a double top showing bearish divergence. Directional volume has seen buyers "ruling" for a while now and it may be time for supply to pick up (more selling). You can also add trend lines to the chart and use 30m chart for entry.
On the weekly chart today's candle was 2 pennies away from being a true reversal candle (this week's open is below last week's green candle open). Stock price is unusually high above 10sma.
I am holding 9/4 280 puts at a loss because I bought too early, but they are much better today. I am holding overnight.
$HD:NYSE - HOME DEPOT INC - Breaking out over old highsHome Depot is running well at the moment registering as a strong buy on the Trading View TA signals. Another one breaking out over old highs. Worth a watch.
The Home Depot, Inc. (The Home Depot) is a home improvement retailer. The Company sells an assortment of building materials, home improvement products, and lawn and garden products, and provides various services. The Home Depot stores serves three primary customer groups: do-it-yourself (DIY) customers, do-it-for-me (DIFM) customers and professional customers. Its DIY customers are home owners purchasing products and completing their own projects and installations. The Company assists these customers with specific product and installation questions both in its stores and through online resources and other media designed to provide product and project knowledge. Its DIFM customers are home owners purchasing materials themselves and hiring third parties to complete the project or installation. Professional Customers are primarily professional renovators/remodelers, general contractors, repairmen, installers, small business owners and tradesmen.
