Home Depot $268 target on earnings beat
Earnings per share $2.28 v consensus $2.10
Guidance for full year 2020 EPS $10.45 v consensus $10.08
HD trade ideas
LONG HD on touch of support at 164Levels of support/resistance typically produce a pop or bounce on the first touch.
There is an untested level of support in the valley around $164
SETUP: This is not a prediction price will get to 164. However, if it does, enter long.
I call this conditional trading.
ENTRY: $163.5
Long position
TARGET: $170 (or anything close)
This is an area below some lows that would provide resistance
STOP: $160
Below the low candle in the valley in which we took our long
HD is tired at this pointShort IMO and here are few reasond: 3 times failed to break 239.50ish, RSI begin downtrend, volume decreases, China virus , Market is on the verge of cracking down, ER are soon and even if reports are good HD will go lower in order to break 239.50 on earning day. but I doubt that.
HD BounceHD on the 4-hour chart has reached its highs while being overextended beyond the bollinger band. It has also pulled away from its moving averages. This can cause a bounce off the highs which are acting as resistance trending back to the moving averages. I expect this to be a quick trade, with a 1-2 day turnaround.
Bearish Engulfing in HD on FridayBearish Engulfing in HD on Friday.
Stock tested upper resistance level of massive window but failed 2 times. This second time a bearish engulfing was formed. Short idea, with tight stop loss above pattern high @ 235,71 USD.
Target is set to last significant low of the former rally, which is at around 217,53 USD.
HD Long on SMA 200 bouncePros:
- FI and MACD both trace higher low even when the price is at lower low.
- RSI traced double bottom and RSI starting to slope up
- MACD histogram in weekly trend has alredy ticked down quite abit (lower potential downside)
- High potential profit if prices break above SMA200. Can realistically expect 4R-5R profits
Cons:
- Volume on red days still relatively high. Ideally would prefer a decline in red days volume as prices goes down for Long trade. I am betting on the SMA 200 holding based on FI, MACD and RSI
