HD - could it break up soon?
HD had been building a base for the past 9 months, forming a double bottom. It began to break above the 200 days moving average on 10th November and had sustain above this MA since.
Currently it looks close to attempting a break above a neckline @ 327. However with still much uncertainty and volatility in the market, it is safer to long the breakup with a test-sized position. Any pullback to retest the neckline could be a safer place to increase position size if the neckline proves to be a new support and trailing stops should be in place.
There is a chance the market could continue to whipsaw sideways for a while more until more economic data comes in.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
Currently it looks close to attempting a break above a neckline @ 327. However with still much uncertainty and volatility in the market, it is safer to long the breakup with a test-sized position. Any pullback to retest the neckline could be a safer place to increase position size if the neckline proves to be a new support and trailing stops should be in place.
There is a chance the market could continue to whipsaw sideways for a while more until more economic data comes in.
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
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