I foresee a significant battle taking place in Home Depot (HD) as the price reaches a multi year trend line and a shorter term channel resistance level.
Notice that the multi year trend line goes as far back as 2000. That is a significant trend line, and resistance level to overcome.
(click images for full size)
The next chart shows a short term channel that happens to mesh with the long term trend line from the chart shown above. This should prove to be a volatile price region for Home Depot.
I will be looking for a short entry on Home Depot. The closer HD gets to $32 (without going over) the better the risk / reward spot to enter short. If Home Depot breaks over the multi year trend line than the position will be closed immediately.
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