During the "Lightning Round" segment of "Mad Money" -- when callers get to ask Jim Cramer about stocks they are interested in -- one caller asked about Home Depot Inc. (HD) on Friday. "I think that Home Depot is terrific," said Cramer.
He also mentioned the stock in his column on Monday.
Let's check out the charts of HD.
In this daily bar chart of HD, below, we can see that prices have been in an uptrend the past year and are trading above the rising 50-day moving average line and the rising 200-day moving average line. The daily On-Balance-Volume (OBV) line has been climbing higher and is telling us that buyers of HD have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration above the zero-line.
In this weekly bar chart of HD, below, we see a constructive picture. Prices are in an uptrend and trading above the rising 40-week moving average line. The weekly OBV line has been rising since December 2018 and the weekly MACD oscillator crossed to the upside for a fresh outright go-long signal.
In this Point and Figure chart of HD, below, we used daily price data and a $280 price target is being projected.
Bottom line strategy: HD could dip towards $240 or so if it gets dragged lower with the broader market. Traders could use this potential weakness, if available, to add to long positions. Next $280 and then $300 are our next upside price targets.
(Home Depot is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells HD? Learn more now.)
