HD closes higher for the 3rd day in a row


Home Depot Inc. (HD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team

Highlights

HD closes above its opening price after recovering from early selling pressure
HD closes higher for the 3rd day in a row
HD pushes through Thursday's high
HD stuck within tight trading range

Overview

Moving higher for the 3rd day in a row, HD finished the week 1.07% higher at 241.88 after edging higher $1.00 (0.42%) today, slightly outperforming the Dow Indu. (-0.04%) ahead of tomorrow's Memorial Day market holiday. Trading up to $2.05 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 241.18, the market confirmed its breakout through the previous session high after trading up to $1.16 above it intraday.

Daily Candlestick Chart (HD as at May 22, 2020):

Daily technical analysis candlestick chart for Home Depot Inc. (HD) as at May 22, 2020

Friday's trading range has been $3.69 (1.53%), that's far below the last trading month's daily average range of $6.05. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HD. Prices continued to consolidate within a tight trading range between 234.95 and 242.34 where it has been caught now for the last three trading days.

One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on May 7th, HD actually gained 2.17% on the following trading day.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Buying might accelerate should prices move above the close-by swing high at 248.32 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 234.95 where further sell stops could get triggered.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Home Depot. Out of 135 times, HD closed higher 57.04% 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 62.96% with an average market move of 0.99%.


Market Conditions for HD as at May 22, 2020

Loading Market Conditions for HD (Home Depot Inc.)...
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