Trading Spotlight on Home Depot (HD) Shares

Investors have taken notice of Home Depot (HD) shares. They may be keeping a close watch on certain stock levels. A popular indicator among technical analysts that can help to measure the strength of market momentum is the Average Directional Index or ADX.

Strong Momentum?

At the time of writing, the 14-day ADX for Home Depot (HD) is standing at 20.04. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal while one greater than 25 would indicate a strong trend.

Relative Strength Spotlight

When looking at technical levels, traders should not overlook the RSI reading as it often can dictate if momentum has pushed past a key metric. 57.39, the 7-day stands at 58.12, and the 3-day is sitting at 57.85.

The Relative Strength Index (RSI) oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70.

Looking further at additional technical indicators we take note that 14-day Commodity Channel Index (CCI) is sitting at 86.99.

CCI Quick Facts

  • Used to Identify start of a trend
  • Used to Identify end of a trend
  • Alternative metric for spotting oversold/overbought territory

    Relative Strength Spotlight

    When looking at technical levels, traders should not overlook the RSI reading as it often can dictate if momentum has pushed past a key metric. The current 7-day RSI stands at 58.12, and the 3-day is sitting at 57.85.

    The Relative Strength Index (RSI) oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70.

    Looking further at additional technical indicators we take note that 14-day Commodity Channel Index (CCI) for Home Depot (HD) is sitting at 86.99.

    CCI Quick Facts

    • Used to Identify start of a trend
    • Used to Identify end of a trend
    • Alternative metric for spotting oversold/overbought territory
    • Designed by Donald Lambert

    Reading levels close to +100 point to potential overbought range while a reading close to -100 would indicate possible oversold territory.

    Near Term M/A Update

  • Designed by Donald Lambert

Reading levels close to +100 point to potential overbought range while a reading close to -100 would indicate possible oversold territory.

Near Term M/A Update

Shares of Home Depot (HD) have a 7-day moving average of 164.98. Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends.

Typically bull markets are times when investors may be willing to be a bit more speculative with stock selection. Managing risk is generally at the forefront of many strategies. Investors trying to shift the odds in their favor may be searching for the perfect balance and diversification to help mitigate the risk and enjoy healthier profits. With so many different stocks to choose from, it may take a while to zoom in or a particular set. Investors will also be watching the next wave of economic data to get a better sense of how the overall economy is fairing. With so much noise in the markets, it may be necessary to narrow the gaze in order to set the table for success. Investors may be on the lookout for the major catalyst that either keeps the bulls charging into the second half the year, or wakes up the sleeping bears.

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