Home Depot Is Rebuilding A Strong Chart

Home Depot

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.

home depot

 

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.

 

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