Strong Trending Home Depot HD Surges to New Highs
We love the concept of “Strong Stocks Getting Stronger,” and Home Depot (HD) continues to trend powerfully higher, extending its bull market with a fresh new breakout today.
Let’s chart this stock and discover what opportunities may be present here for us:
First, we’ll start with a daily chart to highlight the 2015 uptrend, “flag” pattern (or “Rounded Arc”), and the recent breakout to all-time highs.
Price surged at the beginning of 2015, consolidated through the middle part, and recently broke out higher from July to present.
Today’s bullish gap on higher volume confirms the uptrend and suggests even higher prices are perhaps likely yet to come as the uptrend continues.
Closely monitor the $122 gap-up level here, the $120 resistance level prior to the gap, and the session high of $124.
We can pull back the perspective to highlight the weekly chart to underscore the strength of the trend:
The mid-2015 “flag” or retracement (“arc”) took place into the rising 20 week EMA – a key support level (and low-risk spot to buy shares) in an ongoing uptrend.
We can see an even longer sideways consolidation lasting a year between 2013 and 2014 around the $80.00 per share level.
The later 2014 breakout set the stage for another large impulsive trend move higher.
We’re now seeing another extended trend move (swing) higher in price which again suggests potentially higher prices yet to come.
It’s lower risk to buy shares on retracements or pullbacks to support as opposed to rushing in to buy shares at a new breakout, though as seen, aggressive breakout strategies can be effective.
For now, monitor the daily chart levels mentioned above in the context of a “strong stock getting stronger.”
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).
These trends are very fast to change up, so that’s why been careful with things is how we should go on and only than we could get success, I am very lucky to have high quality team of experts from OctaFX broker to seek out best opportunities for me with their daily market updates and with that I don’t require anything else and that is what makes me so much successful in my short career as trader which is not easy.
Trading with strong trend is definitely one of the most
sensible things to do and also keeps the risk down. I believe finding the right
trend can be so tough, as there are so many fake ones. I am able to do analysis
easily due to cTrader platform; it’s powered by OctaFX broker. This platform is
especially develop for ECN trading and have got upgraded system with lots of
added technology while they got advance charting system too, so it’s easier to
find the correct trend.