Home Depot: Poised for a ST bounce (& maybe a LT rally).


Home Depot (HD) has become very oversold on a short-term basis. A 9% decline in less than a week has taken its RSI chart on HD to an oversold level...at a time that it is also testing its trend-line from last December. So it should bounce off of that trend-line and see a short-term bounce.

On top of this, other assets...whose correlation with HD...are testing (or very close to testing) very important resistance levels. Therefore, if these other assets (LOW, lumber and the ITB home construction ETF) can indeed break meaningfully above these key resistance levels, HD should follow them higher on a longer-term basis as well.

To see the charts we're talking about...and thus see the levels that, if broken, will be positive for several different assets (including HD), please click here to subscribe to "The Maley Report" (TheMaleyReport.com).



Matthew J. Maley

Managing Director

Chief Market Strategist

Miller Tabak + Co., LLC

Founder, The Maley Report

TheMaleyReport.com

275 Grove St. Suite 2-400

Newton, MA 02466

617-663-5381

mmaley@millertabak.com


Although the information contained in this report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This report is for informational purposes only and under no circumstances is it to be construed as an offer to sell, or a solicitation to buy, any security. Any recommendation contained in this report may not be appropriate for all investors. Trading options is not suitable for all investors and may involve risk of loss. Additional information is available upon request or by contacting us at Miller Tabak + Co., LLC, 200 Park Ave. Suite 1700, New York, NY 10166.

Posted to The Maley Report on Nov 26, 2019 — 9:11 AM
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