Home Depot may rise to 395.00 - 404.00

Our pivot point is at 348.

Our preference

The upside prevails as long as 348 is support.

Alternative scenario

The downside breakout of 348 would call for 334 and 326.

Comment

The RSI is above 70. It could mean either that the stock is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day moving average (respectively at 346.5375 and 340.6672). Finally, Home Depot is trading above its upper Bollinger band (standing at 366.58).

Supports and resistances

413 **

404 *

395 **

387

369.12 (USD-last)

354

348 **

334 *

326 **

Number of asterisks represents the strength of support and resistance levels.