Thanks to its stronger-than-expected retail sales data, The Home Depot, retail distributor of residential remodeling products, could breakout the USD 53.71 resistance in the short term.

From a fundamental viewpoint, despite a high valuation, analysts polled by Thomson Reuters have regularly revised upward the earning per share estimates. Consequently, profitability is improving, showing a relatively good financial health of the company. Besides analysts polled by Thomson Reuters have regularly revised upward the earning per share estimates. Consequently, profitability is improving, showing a relatively good financial health of the company.

Technically, prices continue to increase sharply for several month. On all time scales, all indicators are green and moving averages are well oriented. The security is now moving toward the mid-term resistance located at USD 53.71 and seems able to breakout. This crossing would provide a strong buy signal.

Taking into account all these elements, investors could buy the stock at the current price. The target price is set above the USD 53.71 mid-term resistance before anticipate new objectives. A stop loss will be fixed below the USD 50.7 short term support, threshold that would invalidate the strategy.