Welcome, Guest
Username: Password: Remember me

TOPIC: How To Trade Yesterday's Home Depot (HD) Topping T

How To Trade Yesterday's Home Depot (HD) Topping T 2 years 9 months ago #11206

  • inthemoneystocks
  • inthemoneystocks's Avatar
  • Offline
  • Expert Boarder
  • Posts: 89
  • Thank you received: 5
  • Karma: 0
New all-time highs seem almost normal in this market. Countless stocks hit new-all time highs almost every day. This is exactly what has happened with Home Depot Inc (NYSE:HD). Yesterday, Home Depot surged to a all-time high of $154.65. The difference however, was that the stock reversed those gains and closed near the lows of the day. This formed a stock chart candle called a topping tail. topping tails that occur at 52 week or all-time highs are extremely bearish indicators. Technical investors and traders use this signal as a shorting trigger.

The way investors should trade this is simple. Short Home Depot Inc with a downside target of $139.25. However, if the stock every closes above the high of the topping tail of $154.65, stop out immediately. This gives investors tiny risk of less than $1.00 while rewarding investors with possible downside of $15.00. That is a fantastic risk to reward setup.

Gareth Soloway
The administrator has disabled public write access.