Wednesday, April 26, 2017 2:53:29 PM
New all-time highs seem almost normal in this market. Countless stocks hit new-all time highs almost every day. This is exactly what has happened with Home Depot Inc (NYSE:HD). Yesterday, Home Depot surged to a all-time high of $154.65. The difference however, was that the stock reversed those gains and closed near the lows of the day. This formed a stock chart candle called a topping tail. topping tails that occur at 52 week or all-time highs are extremely bearish indicators. Technical investors and traders use this signal as a shorting trigger.
The way investors should trade this is simple. Short Home Depot Inc with a downside target of $139.25. However, if the stock every closes above the high of the topping tail of $154.65, stop out immediately. This gives investors tiny risk of less than $1.00 while rewarding investors with possible downside of $15.00. That is a fantastic risk to reward setup.
Gareth Soloway
InTheMoneyStocks
Recent HD News
Bantec Reports an Over 50 Percent Increase in Sales and Profits in Q1 2024 from Q1 2023 • BANT • Apr 25, 2024 10:00 AM
Cannabix's Breath Logix Alcohol Device Delivers Positive Impact to Private Monitoring Agency in Montana, USA • BLO • Apr 25, 2024 8:52 AM
Kona Gold Beverages, Inc. Announces Name Change to NuVibe, Inc. and Initiation of Ticker Symbol Application Process • KGKG • Apr 25, 2024 8:30 AM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM
