Home Depot, Inc. (The)

179.5200 247.3600
52 weeks
52 weeks

Mkt Cap 239.69B

Shares Out 1.10B

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Technical Analysis on Home Depot (HD) and American Tower (AMT)

Home Depot, Inc. (HD)

  • Home Depot is the world's largest home-improvement retailer. It sells appliances, tools, paint, lumber, plumbing and electrical, garden and other home-improvement supplies in warehouse-sized stores. About 31% of sales came from plumbing, electrical and kitchen; 29% from hardware and seasonal; and 21% from building materials.

  • HD broke out from a small inverse head-and-shoulders (H&S) formation on Thursday on above-average volume. The breakout recaptured the 50-day moving average, a bullish sign. During the construction of the H&S, HD successfully tested its 200-day average. Based on the size of the inverse H&S, the shares could see a measured move up toward the $233 level. A break over $239, or the recent all-time high, will complete a sideways consolidation going back to August -- with the possibility of a measured move up to the $270 zone.

  • We would put a stop-loss just under the recent lows of $211. We would take profits in the $260/$270 region.

  • American Tower operates wireless and broadcast communications real estate, including wireless towers and distributed antenna systems. It leases space to wireless service providers and radio and television broadcasters. The company has about 171,000 towers and small cell systems networks.

  • AMT, a former leader, has been trading in a sideways consolidation since June (between $200 and $242). Within the base, the shares appear to be tracing out a complex, inverse head-and-shoulders (H&S) continuation pattern. The formation has two heads, which both successfully tested the 200-day average with strong bounces. Over the past week, the stock has pulled back to its 21-day exponential and held. To complete the bullish pattern, AMT needs to break above the neckline at $231. A breakout would open the door for a possible measured move to the $260+ area.

  • We would put a stop-loss just under support and the 50-day average at $215. We would take profits in the low $260+ region.

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