05/02/00 Home Depot Inc (HD)
Points to watch:
Home Depot's stock has seen better
days. The stock dropped 0.37 on Monday to close at 56.13, its low
for the day. A retest of support at the April 17th intraday low of
55.31 is now in order. A short term sell signal would be given if
the stock fails to hold support, with a quick move to long term support at
50.5-51.5 then likely.
A break below the support at 50.5 would
confirm the massive double top that has formed on Home Depot's daily
chart, giving a powerful longer term sell signal.
Daily RSI, MACD, and OBV all showed
strong negative divergences with the price action during the stock's
second top, adding to the bearish case for the stock. OBV has been
steadily declining since late December.
Downside support after a break of the
50.5 level would be at 45.9-46.8, 44.3, and 43. Resistance is at
58.4 and 61.8.
