Home Depot Earnings on Tuesday Market-Mixed/Bearish
Home Depot is scheduled to report its earnings before the market open on Tuesday. The current market price is $196.25 and is in a downtrend over the last two trading sessions.
Home Depot’s first quarter earnings results were disappointing which can be attributed to the cold weather, causing consumers to postpone home improvement projects. Mortgage rates are up around 1% over the last year. At the same time, home prices have gone up as well. So, according to market sources, the company might be a beneficiary of that trend and have rebounded nicely in the second quarter.
The consensus estimate for earnings is $2.84.
On the technical front, the RSI is currently at 44.94% and suggests that the market can move in downward direction. The %K has crossed the %D from below to the upside at 13.80% and suggests that the market may continue trading sideways. The current market price is below the middle line of the Bollinger bands and is currently heading downwards. Overall market sentiment seems to be mixed to bearish. So trading can be done in the stock with tight stop loss, cautiously.
Scenario 1 LIMIT SELL AT 197.00 TAKE PROFIT AT 196.00 STOP LOSS AT 197.50(Technical Based)
Scenario 2 LIMIT BUY AT 193.00TAKE PROFIT AT 194.50 STOP LOSS AT 192.75(Value /Contrarian Based)