Home Depot ( HD) reported their latest quarterly figures to shareholders and fundamental analysts this Tuesday morning. Prices rallied early and have subsequently dipped. 
Let's check out the whole story and decide on a strategy. In our March 31 review of HD we wrote that "Traders should continue to avoid the long side of HD. I anticipate further declines ahead and a still better buying opportunity."
In this daily bar chart of HD, below, we can see that prices remained weak into the middle of May. HD has been bouncing in recent sessions, including today, to test the underside of the declining 50-day moving average line. The slope of the slower-to-react 200-day moving average line has turned negative.
The On-Balance-Volume (OBV) line has weakened this calendar year but has not moved lower since late February. The Moving Average Convergence Divergence (MACD) oscillator has been improving since late February but is still below the zero line.
In this weekly Japanese candlestick chart of HD, below, we can see a mixed picture. Prices are in a downtrend below the declining 40-week moving average line but we see a recent lower shadow telling us that traders have begun to reject the lows.
The weekly OBV line has been steady in recent weeks and the MACD oscillator has been narrowing towards a cover shorts buy signal.
In this daily Point and Figure chart of HD, below, we can see a potential upside price target in the $364 area.
In this weekly Point and Figure chart of HD, below, we see a possible price target in the $248 area.
Bottom line strategy: Aggressive traders could probe the long side of HD at current levels risking to $275. A rally towards the $364 area could unfold in the weeks ahead.
