Home Depot shares rebound on Monday, Argus releases technical analysis-based update on the stock

Research and analysis firm Argus released an update on Home Depot Incs (HD) stock intended for traders who base their decisions on technical analysis methods.

Home Depot shares closed higher for the first time in the past seven trading sessions in New York on Monday. The stock inched up 0.07% ($0.14) to $197.28, after touching an intraday low at $196.40, or a price level not seen since July 11th ($195.95).

Shares of Home Depot Inc have risen 4.09% so far in 2018 compared with a 4.82% gain for the underlying index, S&P 500 (SPX).

In 2017, Home Depot’s stock surged 41.36%, thus, it outperformed the S&P 500, which registered a 19.42% return.

Shares of Home Depot “have been in an uptrend, trading above their Bullish Support line since March of 2009. On July 24, the shares reaffirmed their technical strength when they broke a double top at $204. We look for support at $194”, Argus noted.

“Risk-averse traders could put a stoploss at $192, which would be a double-bottom sell signal. Traders with a longer horizon or investors who already have a profitable position could look for support at $172 and close their position on a quadruple-bottom sell signal at $170. We would take profits approaching our fundamental price target of $215,” the independent research company pointed out.

According to CNN Money, the 32 analysts, offering 12-month forecasts regarding Home Depot’s stock price, have a median target of $215.00, with a high estimate of $230.00 and a low estimate of $165.00. The median estimate represents an 8.98% upside compared to the closing price of $197.28 on July 30th.

The same media also reported that 22 out of 35 surveyed investment analysts had rated Home Depot’s stock as “Buy”, while 9 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Home Depot stock are presented as follows:

R1 – $197.39
R2 – $197.49
R3 (Range Resistance – Sell) – $197.60
R4 (Long Breakout) – $197.92
R5 (Breakout Target 1) – $198.30
R6 (Breakout Target 2) – $198.46

S1 – $197.17
S2 – $197.07
S3 (Range Support – Buy) – $196.96
S4 (Short Breakout) – $196.64
S5 (Breakout Target 1) – $196.26
S6 (Breakout Target 2) – $196.10

By using the traditional method of calculation, the weekly levels of importance for Home Depot Inc (HD) are presented as follows:

Central Pivot Point – $199.36
R1 – $202.03
R2 – $206.93
R3 – $209.60
R4 – $212.28

S1 – $194.46
S2 – $191.79
S3 – $186.89
S4 – $182.00

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