Tuesday, February 23, 2021 11:51 AM EDT
This morning, leading home improvement retailer, Home Depot Inc (HD) reported earnings. The stock sold off sharply after the announcement falling below the important 200-day moving average. In fact, the stock traded down to the 50-week moving average around $257.58 level and has bounced from there. This is now the key support level to watch for Home Depot Inc (HD) shares. Any weekly chart close below this 50-week moving average will signal another decline for the stock.
The next major support level for Home Depot (HD) stock will be down around the $235.00 area. This key support area is where the stock pivoted from a sideways base in mid-June 2020. This support level is also where there is a major retrace level from the March 2020 lows to the August 2020 top. Often, important retrace levels will serve as excellent support when tested.
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very informative