HD Tops Our Targets
by Mike Paulenoff
November 20, 2021 • 11:00 PM 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
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
On March 11, with AAPL in a month-long down-leg and trading at 156.34, Mike Paulenoff posted a relatively bullish analysis for MPTrader members, writing:
"I am watching AAPL more closely than usual these days, as a bellwether for the health/vulnerability of the overall market.
Back on March 1, 2022, Mike Paulenoff posted a technical "heads-up" about JPM for members of MPTrader.com, writing:
"JPM has broken down in glaring fashion from a 12-month Top Formation that my pattern work addressed four weeks ago in case JPM sustained beneath 139-140. Today's low at 134.15 violated my shallowest target zone of 135.50-137.50, and points next to 128-130, with an outlier target zone in the vicinity of 115.
Last Monday morning, May 2, as the equity market careened to the downside ahead of Wednesday's FOMC meeting and the prospect of the biggest rate hike in decades (50 bps), Mike Paulenoff alerted MPTrader members to a potentially significant developing technical setup in AMZN, which had hit a new 13-month low.
Mike wrote: "AMZN pressed to a new corrective low at 2367.50 this AM, a full 37% beneath its ATH.
On Thursday, April 14, Mike Paulenoff cautioned MPTader members about possible near-term upside exhaustion in YIELD and downside exhaustion in longer-term bond prices (and the TLT), writing:
"10 Year YIELD spiked to a new multi-year high at 2.84% today, but Daily Momentum remains well below yesterday's Momentum high, which is our first indication that perhaps the vertical assault in benchmark YIELD is nearing upside exhaustion.
JPM (JP Morgan) reports quarterly earnings this coming Wednesday during pre-market hours. Investor reaction to this particular report is positioned to have a significant influence on the price of the stock. JPM's outspoken and high profile CEO Jamie Dimon already has warned us that changing (i.e.
