Hello trader friends! Here’s an update of my technical analysis on the largest home improvement retailer in the United States, The Home Depot, Inc. or HD in the New York Stock Exchange. The last time I posted on this was when it just had broken down from its 15-month uptrend last June (kindly check here). After that, the selling pressure followed through and the stock price went all the way down clearing out the $29.44 marker and found some support around the $27.00 area like what I pointed out on my previous post on this topic. If you were able to short at $31.00 or right at the breakdown point, that’s around a 10% gain upon covering your short position at its closing price yesterday of $27.38… not bad at all!
Right now, the HD stocks are still facing downwards and could head further down. If it does, the immediate support could be $26.62. If the stocks move past below the $26.62 price mark, the next support that it could encouter is $24.47. In case the stocks change its course and start to ascend, it needs to first break out from the 3-month downtrend. Once it does, the $29.00-30.00 could be the next resistance area.