Score 7.4 (out of 10): HOME DEPOT INC sets up for +4.9 rally in 2 months

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What’s Going On Here?

The US housing market is doing particularly well as people continue to adjust their work-from- home set ups. HOME DEPOT is one of the biggest beneficiaries of this trend and the stock has rallied +51% this year.

Why Now?

HOME DEPOT INC has triggered a new price range signal. During similar occasions, HOME DEPOT INC shares had a median return of +4.9%, over the following 2 months – based on 10 historical occasions with 7 of those showing positive returns (70%). This buy signal for HOME DEPOT INC received a high score of 7.4 (out of 10). This insight was generated on 2021-December-15 with last price of 402.2.

What’s This Company About?

HOME DEPOT INC is in the Retail-Building Products business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth 0.7% more (average). Ticker symbol: HD US.

What’s My Risk / Reward and Time Horizon?

We found 2 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 421.98 (+4.9%) has been reached. Based on HOME DEPOT INC’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 381.9 (last price at 402.2), which is equivalent to a -5% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

3.5% (May-2021), 6% (September-2020), -1.3% (February-2020), 11.2% (August-2019), 5.7% (May-2019), 4.1% (August-2018), -4.7% (February-2018), 16.2% (November-2017), -5.2% (May-2017), 9.8% (January-2017).

Historical Chart:

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Summary:

NameHOME DEPOT INC
ViewUp
Star (1 to 10)7.4
Target+4.9%
Time2 months
Hit Rate70%

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