Hammering Out a Strong Chart in Home Depot

Retail has been a tough call in 2016, in fact many of the biggest names like Home Depot and Lowes were brought down hard just this past fall.  Some tough housing data coupled with potentially weak consumer trends had these stocks in a virtual tailspin.  Hope Depot tagged its high in August and fell 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.

We see some interesting chart patterns taking hold in Home Depot following the bottom put in early November.  A series of higher highs, higher lows mark the chart up but since early November the trajectory of moving averages has been positive.  The MACD is now on a new buy signal, momentum is strong and there has been little chance to get on board this very strong trend. 

Relative strength is impressive but we note these same numbers were tagged in the summer as the stock reached a climax peak.  Something to watch out for, but perhaps after a brief pause this stock should be headed higher once again in early 2017.

https://www.youtube.com/watch?v=ACcGIZcmiMI

0 Comments

Join In on this conversation, post a comment below.
No comments yet... Be the first to comment.

Related

Is The Fed Still Relevant? Markets Say YES!

While it may seem stocks have been surging higher since the election a month ago, some areas of the...

December 11, 2016
stocks

Deutsche Bank Is Ready to Make a Powerful Move Up

The foibles of European banks is quite known, these stocks have been the pressure cooker for several...

December 07, 2016
stocks

Popeye's Louisiana Kitchen Has a Chart Worth Buying

We have been skipping around the restaurant group of late as there are signs this sector is recovering...

November 23, 2016
futures

Fed Policy Key to Trade

The equity markets are ripping higher once again, with the S&P 500 up nearly 1.40% this morning. The...

February 17, 2016