Home Depot earnings on deck

Can the retailer maintain its uptrend?

Uptrend 4

On Tuesday August 18th, Home Depot (HD), the home improvement specialty retailer, is likely to unveil second quarter EPS of $3.48 vs $3.17 last year on sales of $33.6 billion compared to $30.8 billion a year ago. The Co is also anticipated to move up or down by 5.3% based on options volatility. The Stock slid 3% after they last reported earnings.

Looking at the chart, HD has been in a long term uptrend since posting a year-to-date low in March at the start of the coronavirus pandemic. Price action quickly rallied to an all-time high, consolidated inside a symmetrical triangle continuation pattern and then broke out to the upside. Price action remains supported by its 20-day moving average. The MACD is indicating upside momentum as it trends higher above its median level. Strong overlap support can be seen at the $260 level. As long as prices can hold above their 20-day MA, we anticipate a continuation of the trend higher towards $292 and $310 in extension. A break below $260 could signal the end of the bullish trend channel.



Source: GAIN Capital, TradingView

Happy Trading

More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.