For the retail sector, 2016 was a rough year. Many of the biggest names like Home Depot and Lowes came down hard just a couple of months ago. Tough housing data coupled with potentially weak consumer trends had these stocks in a virtual tailspin. Home Depot tagged its high in August before falling some 20% over the next three months. However, since the election and some “good feelings” about the economy, we have seen a resurgence in some of these big retailers – just in time for the holidays.
You can see some interesting chart patterns taking hold in Home Depot following the bottom from early November. A series of higher highs and higher lows moved the name up the chart, and since early November the trajectory of moving averages has been positive. The MACD is on a new buy signal, but because momentum is strong, traders have little chance to get on board this very strong trend. Even though relative strength is impressive, these same numbers were tagged in the summer as the stock reached its peak. Watch for a brief pause before this stock heads higher once again in early 2017.
Home Depot(NYSE: HD) Video Chart Analysis
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About Home Depot
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me (DIFM), and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, cabinet refacing, furnaces, and central air systems, as well as acts as a contractor to provide installation services to its DIFM customers through third-party installers. It primarily serves home owners; and renovators/remodelers, general contractors, repairmen, installers, small business owners, and tradesmen. The company also sells its products through online. As of December 31, 2015, it had 2,274 stores, including 1,977 in the United States, 182 in Canada, and 115 in Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia