Home Depot (HD) – Home Improvement Strength – May 5th, 2020

S&P 500 Market Outlook: Mildly Bullish

Bullish Trade: HD $221.84

The bullish DailyPlay for Tuesday, May 5th is Home Depot (HD). HD has rallied during COVID-19 lockdowns as home improvement projects and stimulus checks have increased spending. 

Fundamental View

  • Home improvement spending has accelerated 10-15% since April
  • HD benefits from extended lockdown periods as people stay at home
  • Earnings on May 19th (in 15 days)

Technical View

  • HD’s 1M and 6M trend has remained bullish on April 27th
  • HD broke out above $215 resistance and retesting as support
  • Strong relative strength score (10 out of 10)

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