Don't Ignore This Chart!

HD Popping From Consolidation and TRV Pushing to New High

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I started at the Market movers (%up) widget for Dow Jones stocks on my dashboard for today's chart(s). When I requested the RRG for these ten stocks, the RRG below showed up.

These then stocks are all moving higher today, but their relative trends differ significantly, as you can see on the Relative Rotation Graph.

Only three have interesting tails. These are HD, MMM, and TRV.

The initial start of a new relative trend was picked up by the RRG-Lines towards the end of 2020 when both rose above 100 while the RS-Line managed to break its falling resistance line.

After the initial rise, relative strength consolidated at the level of the mid-2020 relative high, and a horizontal resistance level started to emerge.

This relative pressure caused the tail on the RRG to roll over and briefly drop into the weakening quadrant.

The break higher and the ensuing up move in relative strength are now pushing the tail into leading. There is now plenty of upside potential from a price perspective, while the downside is protected at around $150.

HD's tail just crossed into the improving quadrant from lagging. It is an early call but the fact that:

  • Relative strength is testing horizontal support from early 2020
  • RS-Momentum is crossing back above 100 putting HD into improving
  • Price is breaking away from its recent consolidation

Make it a potentially interesting play. A break above $290 will be the confirmation.

#StaySafe, --Julius

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Julius de Kempenaer
Senior Technical Analyst, StockCharts.com
CreatorRelative Rotation Graphs
FounderRRG Research
Host ofSector Spotlight

Please find my handles for social media channels under the Bio below.

Feedback, comments or questions are welcome at Juliusdk@stockcharts.com. I cannot promise to respond to each and every message, but I will certainly read them and, where reasonably possible, use the feedback and comments or answer questions.

To discuss RRG with me on S.C.A.N., tag me using the handle Julius_RRG.

RRG, Relative Rotation Graphs, JdK RS-Ratio, and JdK RS-Momentum are registered trademarks of RRG Research.

Julius de Kempenaer
About the author: is the creator of Relative Rotation Graphs™. This unique method to visualize relative strength within a universe of securities was first launched on Bloomberg professional services terminals in January of 2011 and was released on StockCharts.com in July of 2014. After graduating from the Dutch Royal Military Academy, Julius served in the Dutch Air Force in multiple officer ranks. He retired from the military as a captain in 1990 to enter the financial industry as a portfolio manager for Equity & Law (now part of AXA Investment Managers). Learn More
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