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Home Depot technical analysis after breakout

Home Depot (HD) is sliding sharply since retreating from 138 in August. Note only has price fallen below the cluster of 200-, 100-, and 50-day simple moving averages (SMAs), it has fallen below a rising trendline. 

HD Daily Chart 9/12

(click to enlarge)

Broken support:
- The 130-131 area provided some support factors. 
- There was a rising trendline and the 200-day SMA. 
- The fact that price fell below 130 suggests the preceding uptrend might have ended. - In the short-term, there is still downside risk towards 123.50-124, which is a June support pivot, and a support/resistance pivot going back to August 2015. 

Monitor resistance:
- At this point, there is a bearish outlook due to the breakout.
- However, we should note that the pattern of higher highs and higher lows is still in play under price falls below 123.50. 
- Now, if price does break below 123.50, we can have more confidence of a bearish outlook. 
- In this scenario, I would look at the 130-132 area as a key resistance against a subsequent pullback. 
- Or, if you are still bullish on HD, I would take a conservative approach, and limit the target to 130-132 instead of another high at 140, or even the previous high at 139. 

Or look for support first:
- Before breaking below 123.50, I would not take that rising trendline breakout too seriously. 
- Note that after the previous 2 bullish divergence between price and the RSI, a bullish period followed. 
- If a bullish divergence develops in the coming weeks, we might look for a rally, but like I said before, be cautious of the 130-132 area.