Home Depot (HD) is correcting the cycle since the company’s inception

Elliott Wave Forecast Team ElliottWave-Forecast.com

Home Depot (HD), is an American multinational home improvement retail corporation that sells tools, construction products, appliances, and services, including fuel and transportation rentals. Home Depot is the largest home improvement retailer in the United States.

The shares of the Home Depot HD company have entered a very interesting stage. After reaching all-time highs in December 2021, the price fell considerably. According to the Elliott Wave Principle, the stock price should continue to fall. The structure that is developing appears to be a zigzag correction, and if so, it still has a lot of things to say. (If you want to learn more about Elliott Wave Theory, please follow these links: Elliott Wave Education and Elliott Wave Theory).

Home Depot HD monthly chart April 2023

As we can see above on the monthly chart, HD finished its first grand cycle since the company’s inception in late 1999, reaching $70.08. We called this movement the wave (I). At this price, it entered in a corrective phase that ended in 2008 recession at $16.66. We labeled it as wave (II). Since then, the price kept a strong bullish trend, rising as high as $247.70 to complete wave (III). Then, we clearly see the wave (IV) at the beginning of the COVID19 pandemic, in 2020, when the price fell to $139.84. From here, it had again a strong rebound creating a new impulse, being wave IV as a running flat, thus wave V is the shortest of the impulse. This completed wave (V) at $420.79 and wave ((I)) of the grand super cycle in December 2021.

The correction started in December 2021

Since 2021 high, the price of HD has remained bearish and to complete the corrective structure it should continue to decline further. This is because to complete a corrective structure is needed a minimum of 3 waves, where the third wave must break the end of the first wave at least marginally. This suggests further drops in the price of HD which should ideally hit the blue box, this is in the area of $189.61 – $92.22. If we see 5 waves down from wave (b) in this area, this is a good opportunity to look for longer-term buys. However, it is not 100% certain that HD will go as low as $189.61. If 5 waves marginally breaks the low of wave (a) at $263.85, wave (c) of ((II)) and wave ((II)) could be over to continue a new rally.

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.