With investors continuing to respond positively to earnings released earlier this week, Home Depot (HD) has returned to the Green Favored Zone of the SIA S&P 100 Index Report for the first time in a year. Yesterday the shares finished in 10th place, up 7 spots on the day and up 14 positions in the last month.
Since bottoming out back in March, Home Depot (HD) has been under accumulation, steadily advancing in an uptrend of rallies followed by consolidation at higher levels. A spring rally was followed by a summer of consolidation that culminated in a bullish Ascending Triangle breakout last month. Since then, a bullish Flag pattern has emerged. The shares staged a sharp rally in October, followed by 3 weeks of sideways consolidation, and this week the shares have broken out into a second upleg. This breakout to new all-time highs has occurred on a jump in volume indicating increased investor interest.
Measured moves from recent trading ranges suggest potential upside resistance on trend near $425, $438, $475, $525 and $534, along with the $500 round number. Initial support appears near $375, a recent breakout point.
Back in the spring, Home Depot (HD) shares staged a bullish Spread Triple Top breakout from a consolidation zone and haven’t really looked back since. For the last eight months, the shares have been steadily advancing, creating two bullish High Poles, with only a minor correction (not enough to trigger a high pole warning) between them. This week, the shares continue to build on their recent bullish Double Top breakout, climbing to new all-time highs above $400.00.
Vertical and horizontal counts suggest next potential resistance may appear near $435.45, $462.10, or $520.40 on trend, along with the $500.00 round number. Initial support appears near $371.65 based on a 3-box reversal.
With a perfect SMAX score of 10, HD is exhibiting strength across the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.