Home Depot earnings on deck
Gary Christie August 14, 2020 2:39 PM
Can the retailer maintain its uptrend?
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
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