2 Charts That Show Why Home Depot Will Continue Falling This Week

The following stock has been highlighted by VantagePoint ai, an artificial intelligence platform that provides market forecasts 1-3 days in advance. For a free demo click here.

Shares of Home Depot Inc HD have plunged hard with the rest of market since mid-September. From its all-time high of $215.43 on Sept. 12, the stock is down nearly 20 percent. That's more than double the losses in the S&P 500 during that time. 

And if Monday's session was any indication, it's not done going down yet. 

The two main predictive indicators on VantagePoint are the predicted moving average and predicted neural index. The moving average is represented below by the blue line. When it crosses below the black line (a simple 10-day moving average) that's a clear bearish signal. 

On the chart below we can see that bearish crossover occur last Monday thanks to the big red candle. This was telling, as the following morning the company reported Q3 EPS and sales figures above analyst estimates. But the sentiment had already turned. Since then, Wall Street has punished the stock down over 6 percent in six trading days. 

Chart via VantagePoint ai

That first chart shows a predicted moving average for one day in advance. This next one forecasts three days in advance. The same principles apply, but a crossover on this chart is an even stronger signal. 

Chart via VantagePoint ai

The last two candles predicated a bearish crossover in the stock, which not only gives confirmation of further near-term weakness, but tells us that it's likely to continue through the end of this trading week. 

The red-green bar at the bottom of the charts is the predictive neural index. A shift to red, as has occurred in the last week, indicates downside in the upcoming 48 hours. This serves as yet another confirmation that HD is due for more downside this week. 

VantagePoint ai is a content partner of Benzinga. To see what their indicators say about other stocks, futures, commodities or ETFs, or to get a free demo, click here.

Public domain photo via Wikimedia.