Home Depot has staged a remarkable comeback after a miserable finish for 2018. Even its strong earnings report in November was no match for the wicked selling blitz that hit, well, everyone. The stock has recovered nearly all those losses and is ready for a move up to higher ground.
The chart is constructive here, with a steep RSI and overbought conditions on the momentum indicators. The MACD is still on a buy signal crossover from late December, and notice the cloud that twisted from red to green (circled). We have come a long way!
I expect to see this stock head toward last fall’s levels, but first we’ll likely have a bit of sideways consolidation. We added some April 190 calls to the Explosive Options portfolio on Monday.
Take a deeper dive into the chart action of Home Depot on NYSE: HD and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
Love what you’re learning in our market analysis? Don’t miss a single video! Get the latest chart action delivered directly to your inbox every week as Bob breaks down stocks to watch and potential trade options!
About Home Depot (HD)
Home Depot is a home improvement retailer. Its stores sell various building materials, home improvement products, lawn and garden products, and décor products. It also provides installation, home maintenance, and professional service programs to do-it-yourself and professional customers.
As of January 28, 2018, the company operated 2,284 stores, including 1,980 in the United States, the Commonwealth of Puerto Rico, and the territories of the U.S. Virgin Islands and Guam; 182 in Canada; and 122 in Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
