HD Home Depot Daily Chart H&S Hurricane Season

HD Home Depot moves up as the broad markets headed lower. Why? Clever traders looking to enter at a good price bot shares in anticipation of the hurricane trade. As soon as the first hurricane comes towards Florida or New Orleans, folks will run to HD and LOW, buying up plywood and generators, news outlets will roll the same film file footage as last year increasing the fear factor.

Thus, some astute traders are making a bet that the price they got in at, 33-34, should be rewarded as the skies darken with a 'cane comin'. The chart is constructive in the near term, at least it should have a sideways vibe at worse, the 50 MA at 36 should provide an overhead ceiling. Thus, price has moved up two bucks already in short order so the rewards for a hurricane trade greatly diminish as price climbs. The traders that bot at the positive divergence bottom at 33 were the smart ones.

All that said, what if this summer is nothing but blue skies and sunny beaches? The H&S is in play and the back kiss of the neck line is occurring now. Thus, if a hurricane's a comin', the 33 to 37 range is in focus, but, if the weather is calm, the luster will leak out of HD over time, and the H&S target at 31-ish will eventually be explored as the summer moves along into fall. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.