Friday, November 11, 2011 10:07:25 AM
Home Depot - banging at resistance -
>>> Home improvement giant Home Depot (HD), one of the highest-yielding retail stocks, is another name that’s testing a key breakout level right now. While Home Depot has seen some volatile price action over the past few months, this stock has been constrained to the upside by the $38 price level all year. As shares rebound off of Aug. 8 lows, that’s the price level to keep an eye on.
This stock has shown impressive strength relative to the broad market in the last several months, pushing through minor resistance levels when the S&P was stuck sideways. That’s an important indication that buyers are in command of this stock. Another positive indicator is 14-day RSI, a momentum indicator that’s also been posing positive confirmation since August. Because momentum is a leading indicator, the fact that it’s confirming this rally adds to its reliability.
Ultimately, though, an actual trading signal only comes on Home Depot’s price breaking through $38. When it does, the 200-day moving average makes for a reasonable protective stop. <<<
>>> Home improvement giant Home Depot (HD), one of the highest-yielding retail stocks, is another name that’s testing a key breakout level right now. While Home Depot has seen some volatile price action over the past few months, this stock has been constrained to the upside by the $38 price level all year. As shares rebound off of Aug. 8 lows, that’s the price level to keep an eye on.
This stock has shown impressive strength relative to the broad market in the last several months, pushing through minor resistance levels when the S&P was stuck sideways. That’s an important indication that buyers are in command of this stock. Another positive indicator is 14-day RSI, a momentum indicator that’s also been posing positive confirmation since August. Because momentum is a leading indicator, the fact that it’s confirming this rally adds to its reliability.
Ultimately, though, an actual trading signal only comes on Home Depot’s price breaking through $38. When it does, the 200-day moving average makes for a reasonable protective stop. <<<
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