Home Depot (HD) Tests Key Support, If It Breaks Watch This Level

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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Roger Keats 3 years ago Member's comment

very informative