The Home Depot, Inc (HD/NYSE)

Current trend

The news from the USA President upon the possibility of the tax reform implementation supports The Home Depot stocks. The company is “white” taxpayer with effective tax rate of 36% in 2016–2017 years. The decrease of the tax burden by to 20% will let The Home Depot reach the ETA level of 8.1 USD, which is by 25% higher than the last year value.

During the last week The Home Depot stocks decreased by 0.02% against the growth of the S&P 500 index by 0.26%.

Support and resistance

The “bullish” moods have been prevailing for quite a long time. However, the technical correction is not excluded in the nearest future. The issuer is consolidating now. The indicators readings are mixed: the price is above МА (50) and МА (200); MACD histogram is in the negative zone and decreasing. The key trading range is 164.40–166.50. It’s better to open the positions from these levels.

The comparative analysis between the indicators of the company and its competitors suggest the neutrality of its share prices.

Resistance levels: 166.50.

Support levels: 164.40, 161.00, 157.00.

Trading tips

If the price is set above the level of 166.50, the further growth is expected. Closing of profitable positions is possible at the levels of 168.00, 169.50 and 171.00 partially. Stop loss is 165.00.

If the price is set below the level of 164.40, the correction to the levels of 162.00–160.00 is expected. Stop loss is 166.00.

Conformations and entering points can be seen of the lower charts.

Implementation period: 3 days.

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