I know a lot of homeowners who have a "honey do" list. You know what I am talking about and don't try to deny it. There are a number of items on the list that are available at Home Depot (HD) . Let's check out the charts before we head on over to the nearest store.
In this daily bar chart of HD, below, we can see a bullish ascending or rising triangle formation. Prices have made higher lows since June and roughly equal highs since May. Trading volume has diminished through the pattern and that is what old chart watchers like to see. The upside breakout, when it happens, should be on heavy turnover. The On-Balance-Volume (OBV) line has been very steady and is turning upward in anticipation of a breakout, I believe. The trend-following Moving Average Convergence Divergence (MACD) oscillator is crossing upwards for a new outright-go long signal.
In this weekly Japanese candlestick chart of HD, below, we see a bullish set up. No meaningful upper shadows. A rising 40-week average line. A bullish OBV line and the MACD oscillator ready to cross to the upside.
In this daily Point and Figure chart of HD, below, we can see that a trade at $344.70 will refresh the uptrend. A $412 price target is shown.
Bottom line strategy: I seriously doubt that my small purchases will cause HD to break out on the upside, but someone has been buying it, and I recommend new purchases of HD at current levels and above $345. Risk to $325. $412 is our target for now.
