Site Meter The Lawyer Trader: Home Depot: Ready for lift off?

Wednesday, February 17, 2010

Home Depot: Ready for lift off?

I've been following and trading HD for over a month now and I've been looking forward to it reaching this level (the plus 30 level). The $30 range has been a major resistance zone for HD for a while...go and look at the weekly chart to see this. Today it gapped up above the immediate resistance and closed above 30 by two pennies, here's the chart:If the market rallies tomorrow, which is a possibility, this thing could take off quickly. Keep in mind, I'm day trading this thing so by take off, I mean pop up .75 to a dollar in a day. This will possibly offer up a great risk to reward opportunity, as your risk is well defined..cut you loss if it retraces back below 30. Another thing to notice, is that this stock has recently had a breakout, consolidation, pullback pattern. HD could offer up some great follow up trades later on.

As always, time and price will tell.

TLT

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