Few sectors are more sensitive to interest rates (and therefore inflation) than housing. With the major consumer price index due on Thursday, it’s a good time to consider industry heavyweight Home Depot.
First, the home-improvement chain rallied after the last two CPI reports were lower than feared. Will it react similarly to another positive number?
Next, you have the tight consolidation zone between roughly $310 and $322. Notice how prices attempted to break free of this range on Wednesday.
Third, the bounce followed a test of the 50-day simple moving average (SMA). That same moving average had a potential “golden cross” above the 200-day SMA about a month ago.
Finally, this chart includes our 2 MA Ratio custom script. It keeps the default settings of the 8- and 21-day exponential moving averages (EMAs). The most recent rally pulled the fast EMA above the slow EMA, a potential sign of short-term direction turning more positive.
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Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
First, the home-improvement chain rallied after the last two CPI reports were lower than feared. Will it react similarly to another positive number?
Next, you have the tight consolidation zone between roughly $310 and $322. Notice how prices attempted to break free of this range on Wednesday.
Third, the bounce followed a test of the 50-day simple moving average (SMA). That same moving average had a potential “golden cross” above the 200-day SMA about a month ago.
Finally, this chart includes our 2 MA Ratio custom script. It keeps the default settings of the 8- and 21-day exponential moving averages (EMAs). The most recent rally pulled the fast EMA above the slow EMA, a potential sign of short-term direction turning more positive.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
