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Chart of the Day May 15 - Home Depot

Home Depot (HD) is set to report earnings before market open on Tuesday May 16, 2023.  Based on recent options activity the market is anticipating about a $14.65 move in either direction by the close of market on Friday May 19th.

On the daily chart traders can see some recent sideways consolidation for what may seem like anticipation for the earnings report.

Fundamentally, Home Depot may set the tone for the remainder of the week as other consumer related companies such as Wal-Mart (WM), Target (TG), and Alibaba (BABA) also report earnings.

Six out of the last eight (75%) quarters Home Depot stock price fell during the week before subsequently rising putting in a weekly hammer candle similar in appearance to this. 

Will price keep to its historical tendencies or will it fall in the minority this time?  

Some traders are speculating on the direction with heavy options action in both directions while others are simply waiting and reacting to price after the dust settles.

Which camp are you in? We'd like to hear from you in the comments sections.

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