Home Depot jumped above $400 for the first time ever in late 2021. Now after a sharp pullback, value hunters may get interested.
The first pattern on today’s chart is the level around $345. It was a peak in May, and last month it was the low. Is old resistance new support? The 200-day simple moving average (SMA) also rose from below.
Next, consider the large, high-volume bullish outside day that occurred as HD held the price zone. That also suggests big investors stepped in.
Turning to the weekly chart, HD is currently trying to form a bullish inside week. That could also suggest prices are stabilizing following January’s slide.
Finally, a strong housing market has supported fundamentals. Earnings, revenue and same-store sales beat estimates on November 16. (Notice the bullish gap.) It’s now given back that entire gain, with the next set of numbers due on February 22.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The first pattern on today’s chart is the level around $345. It was a peak in May, and last month it was the low. Is old resistance new support? The 200-day simple moving average (SMA) also rose from below.
Next, consider the large, high-volume bullish outside day that occurred as HD held the price zone. That also suggests big investors stepped in.
Turning to the weekly chart, HD is currently trying to form a bullish inside week. That could also suggest prices are stabilizing following January’s slide.
Finally, a strong housing market has supported fundamentals. Earnings, revenue and same-store sales beat estimates on November 16. (Notice the bullish gap.) It’s now given back that entire gain, with the next set of numbers due on February 22.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
