During Monday night’s Mad Money program, Jim Cramer told viewers that homes and remodeling continues to gain strength. That’s why Cramer continued to recommend Home Depot (HD) and Lowe’s Cos. (LOW) , among others.
Let’s check them both out.
In this daily bar chart of HD, below, we can see that prices have been correcting sideways to lower since late August. Prices have been trading through the cresting 50-day moving average line but a downtrend has yet to materialize. The slower-to-react 200-day moving average line has a positive slope.
The On-Balance-Volume (OBV) line has been in a decline from the middle of August and tells us that sellers of HD have been more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator just dipped below the zero line for a sell signal but it looks like the MACD oscillator has turned upwards yet again to a fresh buy signal.