HD Home Depot Negative Divergence Overbot Rising Wedge Gap

Those buying HD now will regret it as 2012 rolls in. Note the blue negative divergence that ushered in a spank down, the red negative divergence that created a smack down, and now, the purple negative divergence that will create the next smack down. Note the green gap a smidge above the current price; this gap can very well be filled this week to satisfy that loose end on the upside and clear the way for the trip south.

The thin black lines show the rising wedge posture for price over the last couple years, bearish. Stochastics are overbot more agreeable to price falling not rising. The lower trend line in teal represents where all hope is lost if/when price tumbles. The 20 week MA under the 50 MA is very bearish.

Projection is for price to top right now, this week, at 37.50-38.50, and then a spank down should occur. As price moves up, watch the 37.80 level since, if you factor in Keystone's 80-20 Rule, should move up further to the 38.20 level. Thus, a short can be considered anywhere between here and 37.80, if 37.80 is broken to the upside, then 38.10-38.30 would provide the next opportunity to enter short. The drop should be significant with the intial move down targeting the 34-35 area. 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.