Home Depot, Inc.

Home Depot was still struggling to hold above $30 at the last day of November when a day afterwards it
soared higher throughout the end of the week. The stock hit $33.56, its best closing price since June 1st.
Looking ahead, the potential for further gains remains open, but watch for potential dip as well.

Thanks to the jump, MACD which was previously stuck at the negative area, managed to flip itself into
the positive zone, while the three EMAs which were still lie above the price also now turned below the
price, indicating that the tone has changed to bullish. RSI however, has hit 70.67, suggesting caution as
the price has entered an overbought area.

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 SUPPORTS LAST RESISTANCES
12/3/2010

30.82 31.35 31.77 32.19 32.82 33.48 33.81 34.57 34.95 36.18 37.03

Although the RSI signaled entrance into the overbought area, a setback from the Friday’s top could
provide an opportunity to reinstate LONG positions or to add more LONG positions. The listed support
on the table above could be used as entry points, while the objectives could be set between $33.81 and
$37.03 for now.

Statistics

HD Scorecard
Week 1 Week 2 November

↑ 3.30% ↓ 1.50%
Week 3

↓ 0.70% ↓ 0.70%
Week 4
↓ 2.23%
Dec MTD YTD

↑ 10.82% ↑ 15.73%
Not a pretty stats, though. But HD wiped out the consecutive three weeks losses in just three days into
December by gaining 10.82%, sending it to the top of Dow 30 list.

The strategy
Immediate entry or trying to wait for lower prices could be utilized to trade HD. Those who are
inconvenient on buying on rally may choose to find entry at $32.82. The risk is if HD falls back below its
EMAs at $29.92. While above $29.92, the bulls are still in control.

Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any
securities. This report has been prepared based on sources believed to be reliable, but there is no
assurance or guarantee regarding its completeness & and accuracy. The author accepts no responsibility
or liability arising from any use of the report.

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