Home Depot Inc. (HD) reported its third-quarter numbers here on Tuesday morning and is the Stock of the Day at Real Money. Home Depot posted modestly stronger-than-expected earnings but trimmed full-year sales guidance as the world's biggest home improvement retailer said some of its investments won't pay off until 2020. Home Depot shares were down around 3% before Tuesday's opening bell.
We covered the stock earlier this month and wrote at that time: "Don't label me a bear on HD but the latest indicators tell me that traders and investors should consider tighter sell stops to lock in gains." The Point and Figure chart we used showed that a trade to $220.28 would weaken the chart. Let's see what the charts look like now for Home Depot, which is a holding of Jim Cramer's Action Alerts PLUS charitable trust.
In this daily bar chart of HD, below, we can see that prices stalled in the $235-$240 area this month. The rising 50-day moving average line was tested a number of times in November and the On-Balance-Volume (OBV) line was steady ahead of this report, suggesting that buyers seemed confident. The Moving Average Convergence Divergence (MACD) oscillator was above the zero line and poised for a turn to the upside.