Home Depot downgraded from 'buy' to 'neutral'
Home Depot was downgraded ... it's already down about 1.3% pre-market.
Looking at the 4 hour chart, HD has been in an ascending channel since December of last year. It recently bounced off channel resistance, and this downgrade might cause it to fall to channel support.
In addition to the channel, notice that the RSI is overbought. Combine all that with the downgrade, and this might be a good shorting opportunity.
I may purchase a couple put options and ride them down for a week or two.
Looking at the 4 hour chart, HD has been in an ascending channel since December of last year. It recently bounced off channel resistance, and this downgrade might cause it to fall to channel support.
In addition to the channel, notice that the RSI is overbought. Combine all that with the downgrade, and this might be a good shorting opportunity.
I may purchase a couple put options and ride them down for a week or two.
Comment:
Judging by yesterday, and pre-market activity this morning, I may have made a mistake. Ooops! I will be watching closely at opening, and may bail on my put position.