The Home Depot, Inc. : Wait for the USD 80.5 resistance
Entry price | Target | Stop-loss | Potential |
---|
US$80.23 |
US$86 |
US$78 |
+7.19% |
---|
The Home Depot's stock is trading in a sharp bullish channel for one year and smart investors can play this strategy to buy on the lower limit and sell on the upper limit.
The company is well evaluated by the Surperformance rating system. Indeed, profitability is constantly improving and is estimated at 11.6% in 2014. Also, EPS and revenue estimates have been revised upward by analysts from the Thomson Reuters consensus.
Technically, all indicators are in the green on all time scales. The 20-day moving average is in support and should act as a stepping stone to help the stock go through the USD 80.5 resistance.
Investors should buy the stock on crossing the USD 80.5 short term resistance, which would drives a new buyer enthusiasm and lead the security toward the upper limit of the bullish channel around USD 86. A stop loss will be set on the lower limit of the bullish channel.
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