We are seeing a corrective decline from a monthly maximum of January 9 of Home Depot stock prices. Some investors will be tempted to buy, because Home Depot stock price dip may seem like a good time to buy. While others may see the cooling economy as a sign to sell. The reality is much of that Home Depot stock is being driven by macroeconomic conditions.
Since the end of December, Home Depot’s stock has added more than 2% in value. It is actively increasing its digitization business investment to increase sales in the HD Home, Cool, and Workwear segments. In the second half of February, the company will report for the past quarter. During the previous week, the stock of Home Depot grew by 1.54%. S&P500 index went up by 1.30% during the same period.
Macroeconomic Events & Conditions
Investors continue to wait for the signing of the first phase of the US-China trade deal, hoping that it may revive the global economy. All details of the transaction will be announced only after the legal execution of the document. On Monday, the US Treasury Department officially excluded the PRC from the list of countries manipulating the foreign exchange market, five months after China was added to this list. Finance Minister Steven Mnuchin noted that China “has made enforceable commitments to refrain from competitive devaluation” of the yuan. Perhaps this commitment was part of a new deal.
Today, December data on inflation in the United States will be published, but it is unlikely to seriously affect the market. The consumer price index is expected to remain at 0.3% and the core CPI at 0.2%.
Today, oil quotes made a weak attempt to regain and rise. Prices are trying to strengthen amid good data on Chinese trade and the upcoming signing of a trade deal between China and the United States, which are the largest energy consumers in the world. In the evening, investors are waiting for the weekly API report on the US crude oil reserves. The last time they declined by 5.945 million barrels. The continuation of this trend may support prices.
Home Depot Support and Resistance
Home Depot stock is trading within the flat market. No single direction tendencies are observed. At the moment, the following key levels of support and resistance can be distinguished: at 216.00 and 225.50, respectively. #HD shares have the potential for decline. Indicators don’t give a clear signal: the price has consolidated between MA(50) and MA(200); MACD histogram is in the positive zone but started to decline. Positions are to be opened from key levels.
Support levels: 216.00, 211.00, 204.00.
Resistance levels: 225.50, 231.00, 239.00.
Home Depot Stock Ideas
If the price consolidates below the support level of 216.00, #HD quotes are expected to fall. Potential profits should be locked in by orders at 210.00, 205.00, and 200.00. Stop-loss – 222.00.
If the price consolidates above 225.50, one may consider buying #HD. The moving potential is aimed at the area of 235.00–240.00. Stop-loss – 220.00. Implementation period: 3 days.
Home Depot Stock Recommendations
Dec-12-19 Upgrade Credit Suisse Neutral → Outperform $225 → $235
Dec-12-19 Reiterated Telsey Advisory Group Market Perform $220 → $210
Dec-12-19 Reiterated RBC Capital Mkts Outperform $246 → $232
Dec-12-19 Reiterated Nomura Neutral $237 → $224
Dec-12-19 Reiterated Morgan Stanley Overweight $235 → $225
Dec-12-19 Reiterated JP Morgan Overweight $252 → $241
Dec-12-19 Downgrade Gordon Haskett Buy → Accumulate $230
Dec-11-19 Reiterated Stifel Buy $255 → $245
Nov-15-19 Reiterated Jefferies Buy $246 → $268
Nov-11-19 Downgrade Edward Jones Buy → Hold
Oct-08-19 Resumed Wolfe Research Outperform
Oct-08-19 Resumed Raymond James Outperform
Oct-04-19 Reiterated Oppenheimer Outperform $215 → $255
Sep-25-19 Reiterated Telsey Advisory Group Market Perform $210 → $220
Sep-17-19 Downgrade Guggenheim Buy → Neutral
Jul-16-19 Downgrade Gabelli & Co Buy → Hold
Jul-11-19 Initiated Goldman Buy $235
May-01-19 Reiterated Telsey Advisory Group Market Perform $192
Apr-11-19 Reiterated BofA/Merrill Neutral $202 → $215
Mar-20-19 Initiated Evercore ISI Outperform $215
Home Depot 1 Day Moving Averages -Strong Buy
Name Value Action
Exponential Moving Average (5) 222.81 Buy
Simple Moving Average (5) 222.61 Buy
Exponential Moving Average (10) 221.58 Buy
Simple Moving Average (10) 220.73 Buy
Exponential Moving Average (20) 220.61 Buy
Simple Moving Average (20) 219.74 Buy
Exponential Moving Average (30) 220.86 Buy
Simple Moving Average (30) 218.16 Buy
Exponential Moving Average (50) 221.92 Buy
Simple Moving Average (50) 222.83 Buy
Exponential Moving Average (100) 221.34 Buy
Simple Moving Average (100) 226.29 Sell
Exponential Moving Average (200) 215.06 Buy
Simple Moving Average (200) 215.07 Buy
Ichimoku Cloud Base Line (9, 26, 52, 26) 218.08 Neutral
Volume Weighted Moving Average (20) 219.55 Buy
Hull Moving Average (9) 225.15 Sell
Home Depot 1 Day Oscillators – Buy
Name Value Action
Relative Strength Index (14) 56.11 Neutral
Stochastic %K (14, 3, 3) 85.79 Neutral
Commodity Channel Index (20) 120.06 Sell
Average Directional Index (14) 15.17 Neutral
Awesome Oscillator 3.97 Buy
Momentum (10) 3.37 Buy
MACD Level (12, 26) 0.57 Buy
Stochastic RSI Fast (3, 3, 14, 14) 85.84 Sell
Williams Percent Range (14) −24.15 Neutral
Bull Bear Power 4.98 Neutral
Ultimate Oscillator (7, 14, 28) 65.03 Neutral