The next oversold rally is key. A weak rally, followed by a decisive breakdown, and this could go to 56.
So far the best stock in $DJI may look tired and need to rest. It was an awesome run and still can continue upside but it looks downside chance is higher now. Short at 9-ema with target price $60.44 previous upside target price with stop loss at recent swing high $65.92. For option traders there is higher chance to make up to 100% from this trade woowtrading.net
HD was a low risk short when divergence showed up, and short term moving averages were broken,
HD needs to hold the up sloping trendline, or it will see 57.
I am stepping a little bit out onto a limb on this call, if only because HD has had such a strong, persistent advance from last fall. When you consider earnings for Home Depot peaked 7 years ago it is a good reminder that HD is a cyclical stock. Cyclical stocks tend to look great after big rallies and they look terrible on the charts going into bottoms. Well,...