Using Volume Price Analysis, I have established a sell line or 21 days where the insiders have sold heavily. Watch for the negative media to start ragging on home improvement or HD in particular. Symmetrical Triangle forming. Looking for it to break to the downside.
Pretty self explanatory this is only a short term move but could very well turn into more than a correction if the DJIA goes sour..
GLHT from Jimmy Gomez
HD is trading below the channel established since 2011. Also the trendline is broken. It may be forming head and shoulder top with neckline support at 73. It is a short candidate below 73.
HD only bounced briefly to 76 earlier this week and I posted on the previous HD chart that I would sell a gap over 76 or 77-78, HD didn't reach my levels. I am willing to get back in on the short side here with a target of 70-68 as labeled on the chart.
The home building stocks have continued lower and HD failed to rally despite raising guidance and beating...
I think this is a good time to take this trade off. VIX has popped up a fair amount. We have had a nice post-options-expiration selloff also. Earnings are also behind us and this is the most oversold the stock has been in over a year (using a 6-month rate of change as the measuring stick). I'll hope I don't miss out on the rest of the decline, but the risk-reward...
