Strong Trending Home Depot HD Surges to New Highs

Aug 18, 2015: 12:30 PM CST

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.”

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Corey Rosenbloom, CMT
Afraid to Trade.com

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5 Comments

5 Responses to “Strong Trending Home Depot HD Surges to New Highs”

  1. Weak Stock WalMart WMT Breaks to New Lows in Downtrend | Afraid to Trade.com Blog Says:

    […] Wal-Mart’s ongoing downtrend and “Weak Getting Weaker” status with that of Home Depot (HD) which I charted yesterday as a “Strong Stock Getting Stronger” with its own breakout to a new 52-week […]

  2. Wal-Mart Stores, Inc. (WMT): Weak Stock Breaks To New Lows In Downtrend | Stocks, Bonds and Mutual Fund Investing Says:

    […] Wal-Mart’s ongoing downtrend and “Weak Getting Weaker” status with that of Home Depot (HD) which I charted yesterday as a “Strong Stock Getting Stronger” with its own breakout to a new 52-week […]

  3. Weak Stock WalMart WMT Breaks to New Lows in Downtrend | Margin of Safety Says:

    […] Wal-Mart’s ongoing downtrend and “Weak Getting Weaker” status with that of Home Depot (HD) which I charted yesterday as a “Strong Stock Getting Stronger” with its own breakout to a new 52-week […]

  4. Junaid Says:

    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.

  5. Fareed Says:

    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
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    find the correct trend.