Score 8.2 (out of 10): HOME DEPOT INC sets up for +6.9% rally in 1 month

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What’s Going On Here?

Negative sentiment might have priced in for Home Depot shares. ‘Wall Street’ sees +25% upside after the recent correction.

Why Now?

HOME DEPOT INC has triggered a new technical analysis ‘rally reversal’ signal. During similar occasions, HOME DEPOT INC shares had a median return of +6.9%, over the following 1 month – based on 10 historical occasions with 8 of those showing positive returns (80%). This buy signal for HOME DEPOT INC received a high score of 8.2 (out of 10). This insight was generated on 2022-April-18 with last price of 300.21.

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 Very Risky. ‘Wall Street’ analysts think the stock price will be worth 25% (average). Ticker symbol: HD US.

What’s My Risk / Reward and Time Horizon?

We found 1 month 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 320.83 (+6.9%) 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 289.41 (last price at 300.21), which is equivalent to a -3.6% 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’ under (2), etc.

Previous episodes:

6.1% (June-2021), 18.7% (March-2021), 1.2% (December-2020), -0.9% (September-2020), 22.4% (April-2020), 6.4% (December-2019), 11.2% (August-2019), 9.5% (May-2019), 7.4% (January-2019), -3.8% (November-2018).

Historical Chart:

Summary:

NameHOME DEPOT INC
ViewUp
Star (1 to 10)8.2
Target6.9%
Time1 month
Hit Rate80%

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