Jim Cramer wants investors to buy Home Depot (HD) on weakness. Apparently, he’s not a technical guy because there is good downside risk here.
We can look at this chart for two seconds and tell you this is not a sustainable move. MACD alone tells us HD needs to revert to mean. RSI is deep in the red.
HD is a retailer in a weak housing market, too, with potential data breach. But why let facts get in the way with Jim Cramer?
Buy to open the HD November 2014 87.50 put up to $2.55.