Home Depot Inc. (HD) has shrugged off the broader market pullbacks with a gap up on earnings to confirm its healthy uptrend is still intact.
GAP REVIEW
On November 13th, 2012, HD gapped up on earnings into the top of the $64.00 trading range. If HD can maintain this gap up over $62.00, it should continue its’ longevity of this uptrend and hunt for higher prices.
KEY LEVEL
Any price move maintained over $64.50 is considered bullish. HD may want to go revisit its previous highs around $68.50.
THE TRADE
Buy HD long over $64.50 and look to ride the continuation of this present uptrend.
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Editor’s note: Many traders implement gap strategies as part of their approach. Here is a short article on How to Profit from the Opening Gap.
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