4 Trade Ideas for Home Depot: Bonus Idea

• Posted by Greg Harmon
• on September 5th, 2023

Here is your Bonus Idea with links to the full Top Ten:

Home Depot, $HD, comes into the week approaching resistance. This is in a consolidation zone that is the handle for a Cup and Handle pattern. A break to the upside would give a target to 386. The Bollinger Bands® opened to the upside Friday to allow a move. The RSI is rising in the bullish zone with the MACD positive and crossing up. There is resistance at 334 and 340 then 344.50 and 355 before 365 and 375. Support lower comes at 326.50 and 322.25. Short interest is low at 1%. The stock pays a dividend with an annual yield of 2.51% and has traded ex-dividend since August 30th.

The company is expected to report earnings next on November 14th. The September options chain shows the biggest open interest at the 325 and then 300 put while at the 300 then 335 call strikes. In the October chain open interest is biggest at the 315 put and the 330 call strikes. Finally, the November chain has biggest open interest at the 250 put and then 310, 335 and 350 call strikes.

Home Depot, Ticker: $HD

Trade Idea 1: Buy the stock on a move over 334 with a stop at 322.

Trade Idea 2: Buy the stock on a move over 334 and add an October 330/320 Put Spread ($2.80) while selling the October 350 Call ($2.30).

Trade Idea 3: Buy the September/November 340 Call Calendar ($9.10) while selling the October 320 Put ($3.15).

Trade Idea 4: Buy the November 320/340/360 Call Spread Risk Reversal ($1.30).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the unofficial end of summer Labor Day holiday, saw equity markets show resilience with a rebound higher off support ending the downtrend.

Elsewhere look for Gold to continue to consolidate near its high while Crude Oil looks to start a trend higher. The US Dollar Index continues its short term trend to the upside while US Treasuries stall in their pullback. The Shanghai Composite looks to pause in the downtrend while Emerging Markets consolidate.

The Volatility Index looks to remain very low making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY also look better to the upside. The IWM looks strong on the shorter timeframe but stuck in consolidation on the longer scale. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus