The Home Depot, Inc. (HD) is now trading with a very clear set of technicals. Taken together they paint a very compelling picture of how investors and traders should be approaching HD. Traders who rely only on fundamentals do themselves a great disservice, often missing out on the better upside inherent in a stock. This is why technical charts are important.
HD’s most recent trading session saw the stock achieve a high of $157.28 and a low of $153.96. The high in the most recent session compares poorly to the established 52-week high of $160.86 which was set by HD on 05/16/17. The recent low represents a 31.51% since 11/01/16 which is a good sign for traders looking to capitalize on the stock’s upside. The current trading pattern for the stock is very telling when one looks at the overall sentiment of analysts. Presently there is a target price of $171.27 set for HD, a figure which is below the most recent high set by the stock. The stock also has a beta of 1.09. Since the beta is greater than 1, it can be interpreted that the stock is theoretically more volatile than the market – something traders will surely be keeping an eye on.
More robust technical indicators are now starting to emerge for the stock and these are very helpful for traders looking to make a strong assessment of the stock’s upside. Both the Relative strength indicator (RSI) and Stochastic measures have come into play for HD. Based on current readings for HD, the 14-day RSI is 58.71%. This suggests that HD is neutral, suggesting that the stock is relatively stable in terms of upward or upward price movement. The stochastic reading is also very revealing based on current readings. In this case, HD has a stochastic reading of 40.00%. This suggests HD is neither overbought nor oversold at prevailing levels. HD also paints a compelling picture via its 50 and 200 SMAs. HD, based on the current trend can be considered bullish. This sentiment has created an attitude towards the stock which can be reasonably said to be positive.
One more set of technicals when explored are capable of providing a better picture for the stock’s upside. HD’s -1.50 has created a negative sentiment when measured over the past 30 days. HD has outperformed the S&P 500 by 7.73. This, has concluded initially, has created higher volatility levels when compared to other stocks in the same sector. Historical volatility for HD is showing a reading of 12.58%. HD also presents with an Average True Range reading of 1.11. HD, unlike many other similar stocks of the same technical profile, has shown a clear hand. The signals produced by the technical chart is near-enough infallible so traders should make the best of the clarity while it lasts.