Let’s pull the perspective back to get a sense of what’s happened previously chart the strength of the current trend:
Pay close attention to the “Rounded Reversal” pattern from 2008 to the early 2012 breakout which set the stage for the current consolidation (sideways move) from 2013 to present.
Shares broke the horizontal resistance into “Open Air” and may continue impulsing higher as a result of bullish money coming in (as bearish short-sellers buy-back to cover losing positions).
This is a quick, ‘flash’ analysis of the potential breakout opportunity so be sure to study trade opportunities (pullbacks) that may develop for Home Depot shares.
This article is brought to you courtesy of Corey Rosenbloom from Afraid to Trade.