HD – Home Depot Inc.
Home Depot Inc. (8/25/15) Short-term (Neutral) : Intermediate Term (Positive) : Long-term (Positive) Home Depot contributed to the dramatic strength in Consumer Discretionary in both the February/March wave and the pop off of the June low. The long-term trend of "higher highs" produced a reversal day to the downside, which is now seeing early signs of a pullback, although nothing critical has been broken, as of yet. The 50-day moving average is edging up to be coincident with the recent low, so a dip below 133.56 should add to the downside pressure to test the 200-day moving average at 130.25. Since that level is now coincident with the uptrend line, it adds to the significance of holding. A break should test the "opening gap" at 124.67, as an intermediate term target. Should that fail, a long-term gap at 116.32 will come into play. This is a strong sector, so it will take significant change in forecast to challenge lower support. It is more likely that the prevailing trend to the upside will persist. A pullback or consolidation above 130 would build the case for an eventual breakout above 139, yielding an upside target of 152. Until a level is violated, the uptrend remains intact.