August 12 Chart of the Day - Home Depot
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Some of the largest retailers like Wal-Mart (WMT) and Home Depot (HD) report earnings this week. Both investors and traders will be looking for signs into these reports that could provide clues to the underlying health of the economy from a consumer perspective.
Today we'll take a look at Home Depot from a price action technical analysis perspective as they report earnings before market open on Tuesday.
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Monthly Chart
On the monthly chart we can see that after setting its $420.61 all time high (ATH) back in late 2022 price fell dramatically all the way down to the $275 area over the next several months.
Since then, price bounced between $275 and $345 for about 18 months before leaping back up and touching $400 before fading back to the $345 level.
Weekly Chart
On the weekly chart we can see with much more clarity the ping pong move between levels.
Trading around $346 earlier today price seemingly has a decision to make of whether to jump back up towards the $400 level, continue fading perhaps back below $300, or simply faking a move in either direction to yet again return to the $345 area.
The market is implying about a $18.10 move in either direction as marked on the weekly chart by this Friday August 16. Share price has risen during the week of earnings 6 of the last 8 quarters but several of those first began down only to rise back up to create a "hammer" type weekly candle.
Could earnings be the catalyst that pushes price to move definitely one way or the other?
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
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