CHART OF THE WEEK - Home Depot (HD)

My Youtube Channel	Facebook Group	My CC Podcasts	FREE Spreadsheets	CPTDashboard.com
Click here	Click here	Click here	Click here	Click here
DISCLAIMER: This chart is based on this date. Im not suggesting a move up or down. I'm showing a chart I'm watching. I'm not recommending this stock as a purchase. Think of it like this, your showing the world thru my eyes and how I see this chart. Period!
CHART OF THE WEEK
Home Depot	HD		LAST TRADE >	$216.56
See the World thru my eyes' - chart breakdown of the week
UCPTD member Jesse turned me on to HD this morning pointing out it 'pretty' much meets all the Golden Rules for a Covered Call canidate and looking at the chart indicators AND when we find out that it doesn't have earnings anytime soon ... I thought it would be a great CHART OF THE WEEK to show you how I see it and apparently how Jesse see's it as well ... GOOD WORK Jesse! ... HD hit an all time high then got crashed at earnings when it announced 2020 forcast could be soft ... the stock fell to ALL my levels for a great LOW ENTRY purchase ... and its HOME DEPOT ... one of if not the largest home supply companies on the planet. HD is trading at levels that even Chuck Hughs might buy some shares (joking) ... I think you get my point.... NOW we do the DEEP DIVE into why it has fallen so and really get a feeling for what others think about its future ... THEN we do the due dilgence on its dividend, premiums, so on. Thanks Jesse for this one, HD could be considered a great low entry canidate purchase ... but no one pays me to make predictions ... just showing you the World thru my eyes :)
RSI	SMA (100)	SMA (200)	KELT MID	OBV TREND
43.7	222.8	209.3	218.04	SIDEWAYS/HIGHER
CLICK IMAGE TO SEE IT LARGER IN ITS OWN BROWSER WINDOW

What's the RSI telling me?
RSI - The RSI is between 40/50 which represents for me a stock that is 'for the most part' fairly valued with some good upside value if the markets are bullish
HD is trading under that 50 RSI ... if Im looking for that low entry purchase I want my stocks more OVERSOLD vs OVERBOUGHT ... now HD is OverSold but its right where I like it
Support Lines
SMA - When looking for a 'Low Entry' purchase we would love to BUY near the 100 day or 200 day support line. Its not 100% but its a 'Buy Low' situation vs 'Buying High'
It tested that 200 day support and bounced off it ... I really like how its trading near that 200 day support and moving higher. HD has some hurdles in front of it for 2020 with its news of a softer 2020 forcast so if were a buyer here, least some of the fluff has sold out of it.
Keltner Channel Breakdown
KC - The stock is trading UNDER the KC MID line which presents more of a 'Low Entry' purchase and now is the time for me to start watching the stock. I like buying for value UNDER the MID line.
Trading right near the MID which confirms my feelings ... I like to buy UNDER the KC MID to feel like I getting that Low Entry purchase.
On Balance Volume or buying momentum ... is it trending Up?
OBV - The 'On Balance Volume' trend line is UP which tells technical traders that the stock has good momentum or in straight talk, people are BUYING IT. This is a 'Green' checkmark for me.
OBV is trending sideways to higher, momentum seems good with HD right now. This indicator is positive for me.
Further research with - Using charts for technical analysis, Dividend information and Earnings Report Date
RSI, SUPPORT LINES		KELTNER, OBV
View Chart-HD		View Chart-HD
Definition of the various charting indicators I use
RSI - The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Source - https://www.investopedia.com/terms/r/rsi.asp
SMA (100/200) - A simple moving average (SMA) is an arithmetic moving average calculated by adding recent closing prices and then dividing that by the number of time periods in the calculation average. ... Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react. Source - https://www.investopedia.com/terms/s/sma.asp
KC - The Keltner Channel is a moving average band indicator whose upper and lower bands adapt to changes in volatility by using the average true range. The Keltner Channel is used to signal possible price breakouts, show trend, and give overbought and oversold readings. Source - https://www.investopedia.com/terms/k/keltnerchannel.asp
OBV - On-balance volume (OBV) is a technical trading momentum indicator that uses volume flow to predict changes in stock price. ... He believed that when volume increases sharply without a significant change in the stock's price, the price will eventually jump upward or fall downward. Source - https://www.investopedia.com/terms/o/onbalancevolume.asp
Disclaimer - No - at the time of this posting I do not have a position in this equity. I will not take a position in this equity for 3 days of this equity as to not front run for this equity.
Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com | and me :)
© 2019 Core Position Trading, LLC and the CPT Dashboard - All Rights Reserved				Disclaimer