HD Trade on Aug 20, 2019 10:32 from MarcoG: Tradervue User Stock Trades.

Company Description

Sector: Consumer Cyclical
Industry: Home Improvement Stores

The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers. The company also offers installation programs that include flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows; and professional installation in various categories sold through its stores and in-home sales programs, as well as acts as a contractor to provide installation services to its do-it-for-me customers through third-party installers. In addition, it provides tool and equipment rental services. The company primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters. It also sells its products online. As of February 3, 2019, the company operated 2,287 stores in the United States, including the Commonwealth of Puerto Rico, and the territories of the U.S. Virgin Islands and Guam; Canada; and Mexico. The Home Depot, Inc. was founded in 1978.

Trade Scenario

Home Depot’s HD Q2 results were mixed: $3.17 per share beat the Zacks consensus by 9 cents (and ahead of the $3.05 reported in the year-ago quarter), while quarterly sales of $30.84 billion fell short of the $30.95 billion estimate (though up 1.2% year over year). Lumber prices reportedly decreased comps, and the company warned of consumer weakness should more tariffs be placed on imported goods.

Trade Variables

Symbol : HD
Gap : 2.5%
RVOL : 4
pmVOL : >100K
avg Vol: 3.7M
Float: 1.1B
Short Float: 0.93%
pmPATTERN : Failed Bullflag in after hours and sort of Up Drifting pattern in PM
Catalyst : ER

Technical Levels

Support: 212 210 209 204
Resistance: 217.5 218.5 219

Trade Plan

HD traded in pm the 214 area, 5$ below 52 weeks high a consolidation above pm high could imply a move testing the 52 weeks high!

Set-up : Up Trend Continuation after consolidation above pm high
Side : Long
Size : 15 (Smaller to build up a position)
Entry : 216.87
Takes :
Exit : 215.87

Comments

HD jumping on earnings beat sat for a beautiful continuation. Actually the stock already gave opportunity to enter after the first 10 minutes but I have a rule to don't trade the 10 min ORB, thus as per yesterday with NVDA I didn't enter the trade! I am btw realizing that perhaps I should put aside this kind of rules. If the first retest is happening! No sense entry wouldn't work at any time of the day! Entering at first retest even if at the min 10 would work! Lesson learned for next time!

I have tried to spot a better entry then yesterday signing the area of consolidation on my charts! I have held for the price to pull back and entered at the first green candle to make a new high once the 216.50 has been retested! I am too scared to enter long when a red candle thus I find more comfortable for the moment to enter still at the first green candle to make a new high! Here for instance as per yesterday if I would have bought the 216.50 the trade was still rolling! The area I have signed was 216.5 / 217.5 and I have entered 37 cents above the bottom, still can be improved!
After my entry the price went all the way to hod but unfortunately 217.5 as per now still is a bear point of control. I didn't like the prints at such levels but I didn't close the position. I stayed in hoping that the 217 would have held the move. It actually did it thus I could have held my position as well! I have closed break-even and for this I have still to practice. I am not sure if I should stay in a trade if I could then spot a better entry price!
I have got almost a whole dollar from my entry, my objective was getting to 52 weeks high adding at eventual pull back and trail stop that level! Thus I didn't lock any profits! 217.5 was a level of resistance and perhaps this is the reason why still we are fighting to break the level! I should have keep it under consideration!!

I wanna improve definitely my entries at pull back and retest levels!