HD Tops Our Targets
by Mike Paulenoff
November 21, 2021 • 12:00 AM EST
One week ago, on Monday morning November 15, Mike Paulenoff posted the following alert for MPTrader members about HD (Home Depot):
"My attached Big Picture Daily Chart shows that all of the action off of the 10/27/21 ATH at 375.15 into last Fri's close at 372.63 exhibits the right look of a high-level bullish Pennant or Flag formation atop the upleg that started at the 10/10 low at 324.16. Based on the pattern and momentum setup, HD is poised for upside continuation and acceleration to one of two likely higher Target Prices (TP on the attached chart) prior to my expectation for a bout of profit-taking and possibly a serious bout of corrective weakness... Last is 373-374."
The next day, in a very positive reaction to a stellar quarterly earnings report, HD did charge higher. Mike posted a follow-up analysis for our members:
"We see that HD indeed has thrust to the upside out of its Bull Flag formation to a new ATH at 387.76 so far, which has satisfied my first upside target zone of 380-383, and is poised for a run towards my higher target zone of 393-400... Only a sudden downside reversal and close below 381 will represent an initial warning signal that the current upleg could be exhausted... Last is 386.63."
By the end of last week, HD had climbed beyond Mike's second target of 393-400, to a new ATH at 410.10, up a whopping 9.7% from his initial alert. Mike's analysis of the chart setup heading into earnings provided our members with "technical directional bias" prior to a potentially significant catalyst. This is one of Mike's most important functions for MPTrader -- interpreting the technical and momentum setups ahead of consequential earnings reports.
What's next for Home Depot? Will the vertical assault continue in and beyond Black Friday, or will HD exhibit signs of exhaustion sooner rather than later this coming week? Join Mike and our members for constant discussion about HD as well as many other individual stocks, ETFs, macro indices, cryptocurrencies, commodities, and precious metals that he and our mptrader membership choose to discuss and technically evaluate throughout every trading day.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
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More Top Calls From Mike
Two months ago, on the afternoon of September 13, Mike Paulenoff brought to the attention of MPTrader members the intriguing and potentially opportunistic technical setup exhibited by the XOP -- the SPDR Oil and Gas Production and Exploration ETF.
Early on October 15, when CVS Health Corporation (CVS) was trading at 85.92, Mike Paulenoff highlighted upside opportunity for MPTrader members, writing:
"For the past 5 months, CVS has gone pretty much nowhere after hitting a new 6 year high at 90.61 on 5/25/21. It is precisely because CVS has traversed a sideways price path since late May that makes my work interpret the CVS technical setup as extremely promising for a run above 90.61 towards 100, and possibly 108-110 in the upcoming weeks and months.
On the morning of October 14, Mike Paulenoff posted the following time-sensitive comment about CHWY (Chewy Inc) to MPTader members:
"CHWY has the right look of a very mature correction from its ATH at 120 (2/16/21) to Monday's (10/12/21) low at 60.45, which represents a 50% haircut from the ATH. As of this moment, with CHWY trading at 62.72, my work does NOT yet have confirmation that THE LOW has been established.
In his September 30th chart analysis for MPTrader members, Mike Paulenoff wrote bullishly about AMD, noting:
"AMD has piqued my interest technically because all of the price action off of its ATH at 122.38 (8/04) into the September lows at 99.51 (9/20) and 99.81 (9/29) has the right look of a complete, or nearly-completed correction of the prior major advance off of the 5/13 low at 72.50. As long as the 99.
MRNA's August downside reversal from a new all-time high (ATH) at 498.60 (8/10/21) to 349.00 (8/16/21) was just the first shot over the bow of a larger-developing corrective pattern and period.
Thus warned Mike Paulenoff to our members on the afternoon of August 16th, when, with MRNA trading at 363.
