Technicals are looking good on this one..
HD
has room to run if the stock can bounce back to the $191.55 resistance. Stoch is nearing oversold territory and RSI is nearing a short-term trendline that should act as support. Volume dropping as the stock falls hints the bulls will soon come in, however, one must remember that high volume is not needed for a downtrend to continue.
I included a modified Modified Schiff Pitchfork and Fib retracement as
HD
has historically followed both quite closely.
Wait for a move to $191 or above before considering entry, I'd put a stop loss between $181 and $182.
HD
has room to run if the stock can bounce back to the $191.55 resistance. Stoch is nearing oversold territory and RSI is nearing a short-term trendline that should act as support. Volume dropping as the stock falls hints the bulls will soon come in, however, one must remember that high volume is not needed for a downtrend to continue. I included a modified Modified Schiff Pitchfork and Fib retracement as
HD
has historically followed both quite closely. Wait for a move to $191 or above before considering entry, I'd put a stop loss between $181 and $182.
However, if it breaks through the trendline and neckline support, we could be in for a serious fall