HD unable to break through key resistance level

Home Depot (HD) Technical Analysis Report for Apr 16, 2018

Highlights

HD closes above its opening price after recovering from early selling pressure
HD unable to break through key resistance level
HD fails to close above 20-day moving average
HD runs into sellers again around 175.60
HD rises to highest close since April 6th

TQ Sentiment

Report Sentiment: 30% Bearish
Technical Forecast:

Overview

HD ended Monday at 174.43 gaining $1.63 (0.94%) on low volume. Today's closing price of 174.43 marks the highest close since April 6th. Trading up to $0.91 lower after the open, Home Depot managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Daily chart for HD

Volatility

Monday's trading range was $2.28 (1.31%), that's below last trading month's daily average range of $3.59. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly below average. Prices continued to consolidate within a tight trading range between 171.80 and 175.60 which it has been in now for the last trading week.

Price Action

After moving lower in the prior session, the stock managed to close higher but below the previous day's open, forming a bullish Harami Candle.

Support/Resistance

Unable to break through the key technical resistance level at 175.06, the share closed below it after spiking as high as 175.60 during the day. The failure to close above the resistance could increase that levels importance as resistance going forward. After having been unable to move above 175.51 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 175.60. After spiking up to 175.60 during the day, HD found resistance at the 20-day moving average at 175.08.

Trend

Home Depot shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.

Order Flow

Selling might speed up should prices move below the close-by swing low at 172.23 where further sell stops could get activated. With prices trading close to this year's low at 170.42, downside momentum might accelerate should the stock break out to new lows for the year. As prices are trading close to April's high at 180.04, upside momentum could speed up should the share mark new highs for the month.

Conclusion

While classical technical analysis indicates a neutral sentiment for the next trading day, our quantitative statistics show a different picture being bearish.

Market Conditions for Home Depot

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HD pushes through prior session high

Sep 18, 2018
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