Is Home Depot (HD) Ready To Rip Higher?

Fundamentally speaking I hear that Home Depot and Lowe's stores are jam packed as folks are doing up their homes.  It's not clear what the reasons are for the sudden home improvement spurt.  Is it a) people doing up their homes because they feel better about their financial future and hence a positive sign for the economy, or is it b) home imromevemt to sell the homes.  For Home Depot's stock at the moment it's almost irrelevant as more demand is good either way.  

My currently bullish view on HD has its roots in the monthly chart, looking back 10 years.  See the first chart below and note the 10 year downtrend line that was broken to the upside in January of this year.  True, it could be a fake-out break-out, but hey what are setups and rules for if you don't stick to them?  

The setup I see here is discussed in my new ebook – '‘Multi-TimeFrame Trading & Investing – A Comprehensive Trading Plan’, which is available as of today (Exciting!), here: http://steadytrader.wpengine.com/trading-plan/

Over on the daily chart I see one of the juicier setups I've spotted in a while: A very tight trading pattern over the past several weeks, coupled with a inverse head & shoulders pattern.  It looks like a spring coil, all compressed and ready to bounce higher  any moment.  What's even better is that this setup allows for very clear risk management.  Depending on risk tolerance and time-horizon, stops can be set at the March lows and initial profit targets can be set at the February highs.

Happy Trading

Serge

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