Home Depot Trading forecasts and signals

The market the day beforeThe trading session on February 22 ended with a correction of the main American stock indices. The S&P 500 dropped 1.01% to 4,305 points, the Dow Jones dropped 1.42%, and the Nasdaq lost 1.23%. All sectors included in the broad market index closed in the red. Producers of cyclical consumer goods showed a noticeable drop (-3.04%), the utilities sector turned out to be more stable (-0.08%).Company newsTV station operator Tegna (TGNA: +7.1%) will be acquired by private equity firm Standard General at a price of $24 per share with a premium of about 15%. The $5.4 billion deal is expected to be completed in the second half of this year.Medtronic (MDT: +3.1%) exceeded EPS expectations, but did not meet revenue forecast. Although the company noted an increase in the volume of procedures and high demand for pacemakers in the last quarter.Home Depot (HD: -8.9%) exceeded expectations for quarterly revenue and EPS, and announced a 15% increase in the quarterly dividend. At the same time, management predicts a slowdown in sales and profit growth this year.ExpectationsThe February index of business activity in the US manufacturing sector from IHS Markit rose to the highest value in the last two months – 57.5 points, surpassing the forecast at 56. Production orders increased at an accelerated pace, while production cost inflation fell to a nine-month low. The restoration was facilitated by the smoothing of restrictions in the supply of components and the shortage of labor as the adaptation and fight against the spread of omicron. The index of business activity in the service sector rose by 5.5 points to 56.7, also exceeding expectations. Sales reached the highest growth since July last year, employment figures are the best in the last nine months. Nevertheless, the continued increase in production costs is pushing up product prices.In February, concerns about inflation intensified, which was reflected in the decline in the consumer confidence index from the Conference Board for the second month in a row - to 110.5. Despite maintaining confidence in the short-term prospects of the labor market and the strengthening of the economy, more than two-thirds of respondents do not expect their income to change in the next six months. The share of consumers planning expensive purchases and trips abroad in the next six months has fallen. We do not expect a significant improvement in consumer sentiment before the start of normalization of inflation dynamics. Geopolitical tensions create increased uncertainty, while the rate of price growth continues to outpace the growth of personal disposable income, reducing purchasing power.Trading on the Tokyo Stock Exchange is closed today due to the national holiday. Indices of other stock exchanges in Southeast Asia are showing positive dynamics. China's CSI 300 rose by 1.07%, Hong Kong's Hang Seng added 0.60%. EuroStoxx 50 gained 0.75% from the opening of trading.Brent crude futures are trading at $93.88 per barrel. The price of gold is $1,898 per troy ounce.In our opinion, the S&P 500 will hold the upcoming session in the range of 4260-4340 points.MacrostatisticsThe publication of significant macrostatistics is not scheduled for today.Sentiment IndexThe sentiment index dropped to 46 points amid geopolitical tensions and hawkish rhetoric from financial regulators.Technical pictureThe S&P 500 continued its decline to the support zone located around 4230 points. The RSI and MACD indicators indicate the development of a short-term "bearish" trend. In the near future, the benchmark may test support levels along the Fibonacci lines. The possibility of a rebound from local lows is not excluded, however, the medium-term trend remains downward in anticipation of tightening financial conditions.ReportsOn February 23, Booking Holdings Inc. (BKNG) will report for the fourth quarter of 2021. The consensus assumes a more than twofold, up to $2.854 billion, increase in revenue in quarterly terms with adjusted EPS of $13.3. We expect fairly confident results of the service, taking into account the weakening of the impact of pandemic factors contributing to an increase in tourist flow. These trends have already been reflected in the reports of hotel chains. The general market expectations are based on the approximation of the monetary volume of bookings for the quarter to the levels of 2019, although the total number of nights booked is still 13% less than these ...

Home Depot quotes continue to move within the correction and the bullish "5-0" model. Moving averages indicate the presence of a short-term upward trend in HD. Prices have broken up the area between the signal lines, which indicates pressure from buyers of securities. At the time of publication of the forecast, the price of Home Depot shares is 323.32. Within the framework of the forecast of the HD stock price, we should expect an attempt to develop a small correction and a test of the support level near the area of 315.00. Next, a rebound and a continuation of the rise in the value of securities. The potential target of such a movement is the area above the level of 365.05.An additional signal in favor of the rise of HD quotes will be a test of the support line on the relative strength indicator (RSI). The second signal will be a rebound from the lower border of the ascending channel, which is part of the ”5-0" model. The cancellation of the option of growth in the quotes of the Home Depot company's share price will be a fall and a breakdown of the 305.00 level. This will indicate a breakdown of the support area, as well as the lower border of the bullish channel and the continuation of the fall to the area at the level of 270.00. We should expect an acceleration of the stock's rise with a breakdown of the resistance area and a close above the level of 43.05, which will indicate a breakdown of the upper limit of the bearish channel.Home Depot shares forecast for July and August 2021Thus, the Home Depot stock forecast for July and August 2021 suggests the development of a correction and a test of the support area near the level of 315.00. From where we should expect a rebound and an attempt to continue the rise of shares in the area above the level of 365.05. The trend line test on the relative strength indicator will be in favor of the growth of securities. The cancellation of the HD rise option will be a drop and a breakdown of the 305.00 level. This will indicate a breakdown of support and a continuation of the fall in value to the area below the level of ...