HD climbs to highest close ever
Home Depot Inc. (HD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HD finished the week 3.26% higher at 245.03 after gaining $2.67 (1.1%) today, notably outperforming the Dow Indu. (-0.09%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 245.03 marks the highest recorded closing price ever. Closing above Thursday's high at 243.60, Home Depot confirmed its breakout through the prior session high after trading up to $1.60 above it intraday.
Daily Candlestick Chart (HD as at Feb 14, 2020):
Friday's trading range has been $2.57 (1.06%), that's below the last trading month's daily average range of $3.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HD.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since January 22nd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 235.77 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on January 16th, HD gained 1.35% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Home Depot. Out of 203 times, HD closed higher 57.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.07% with an average market move of 1.03%.