HD Home Depot Daily Chart Rising Wedge Overbot Negative Divergence

Keystone continues to hold and add retail shorts, the two dangerous thinly-traded inverse ETF trade's, long SZK and RETS, remain open.  Also Keystone enjoyed the intial move down with RTH and wanted to open that trade again today shorting RTH but could not find any shares.  HD is in the retail space as well as housing sector. The run higher this year is a phenomenal and surprising move. Late February was when the retail sector started to run out of gas.  The red rising wedge, overbot RSI, stochastics and money flow and negative divergence created the spank down but price bounced off the 20-day MA in March only suffering a minor flesh wound.

The purple lines show the next short set-up for early April which created a spank down that was held with the 20-day MA support. The bounce moves in early March and early April are uncharacteristic of the chart profile which is rare.  Those two boosts will simply have to be chalked up to storms that hit across the U.S., early building season this year, and LTRO shananigans, as well as traders simply buying into the housing recovery hype lately and thinking HD is the place to be. Regardless, price continues skyward today printing another intraday high.

The pink lines show the rising wedge, overbot stochastics and negative divergence now in place. Note that the RSI and money flow in the last few days time frame wants to see another matching price high.  Stocks like this that catapult upwards on momo take a little bit of time to roll over, look at AAPL as an example. Thus, HD was shorted today and the goal is for a negative divergence smack down to send it to the 20-day MA, perhaps lower, where the short can be covered, then reload once price comes back up again. The 20-day MA is very important support for price and it will speak volumes if the 20-day MA fails. HD rolling over will strike a sour note for the retail sector, housing sector and broad market. This information is for educational and enterntainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.