I’ve been watching Home Depot stock (NYSE:HD) for a while now. In fact, on June 12 I wrote a post wondering if Home Depot (HD) was topping. In that post, I said “all bets are off on a strong move above $135.”
Well, that’s where the stock is now. And that level has been giving Home Depot stock some trouble lately. Let’s take a closer look at this. But first, some background…
I recently gave a talk to the MTA called “musical polarity.” The polarity principle is a key technical analysis tool that many use to find “horizontal” support and resistance when identifying overhead supply (fundamental term), etc. That said, it can become even more powerful when aligned geometrically.
If we orient our polarity view to the natural plane of the chart (x,y) axis then some very powerful techniques are unleashed. In this case, the concept of support at the bottom of a circle drawn within the plane of the largest correction on the chart diameter will lead to resistance at the top of the circle.
Also Read: This S&P 500 Chart Pattern Says 2200 Is A Big Deal
IF everything is vibration (I believe to the core of my being that it is), THEN the energy vectors along the plane of the circle (x,y and z) hold a special place, so to speak. See the chart of Home Depot stock below.
I have no idea if this is a top on HD. I simply use chart pattern recognition to identify important areas for defining risk/reward. Here, I’m demonstrating that HD hit a top of the circle defining it’s move. So far, this level is holding.
Home Depot Monthly Chart w/ Target Zone
A “weekly” close above the top of the circle would likely imply higher prices yet. Thanks for reading.
Twitter: @BartsCharts
Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
