Over the last few weeks, Home Depot, Inc (HD) has created a Head and Shoulders reversal. With the volume and price patterns being in line with the prescribed reversal theories, we are now looking for a break of the Head and Shoulders neckline. After the neckline break, we will wait for a retrace back to support turned resistance for a short setup.



After creating an ascending triangle over the last 30 day, E.I. du Pont de Nemours & Company (DD) broke out on heavy volume and has now retraces back to resistance turned support. This retrace back to support indicates DD should now see an 8% upside move over the next few weeks.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.