Home Depot Sits Calmly as Housing Surges
The U.S. housing market is taking off -- at least according to yesterday’s data (starts and permits). However one of the biggest companies in the sector is still negative on the year: Home Depot.
The first pattern on today’s chart is the bearish gap on February 21 after sales and guidance disappointed. HD has recently started probing the $305.55 opening price from that session. Does this create the potential for a breakout?
Second, positive pressure could be emerging from below. Notice how HD tried to break under its March low last month but quickly rebounded. There was a higher low on June 1, followed by a steady push upward. That kind of price action may suggest buyers are lurking near the current price area.
Third, the 8-day exponential moving average (EMA) is above the 21-day EMA. MACD and the 50-day simple moving average (SMA) are also rising. Those may reflect improving short- and intermediate-term trends.
Finally, HD stalled at its 200-day SMA about two months ago. However the current consolidation is occurring at the same line -- a potential sign it’s losing relevance as resistance.
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The first pattern on today’s chart is the bearish gap on February 21 after sales and guidance disappointed. HD has recently started probing the $305.55 opening price from that session. Does this create the potential for a breakout?
Second, positive pressure could be emerging from below. Notice how HD tried to break under its March low last month but quickly rebounded. There was a higher low on June 1, followed by a steady push upward. That kind of price action may suggest buyers are lurking near the current price area.
Third, the 8-day exponential moving average (EMA) is above the 21-day EMA. MACD and the 50-day simple moving average (SMA) are also rising. Those may reflect improving short- and intermediate-term trends.
Finally, HD stalled at its 200-day SMA about two months ago. However the current consolidation is occurring at the same line -- a potential sign it’s losing relevance as resistance.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
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. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. 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: https://www.tradestation.com/important-information.
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