Current trend

The Home Depot Inc. shares, the largest home improvement company, resumed their decline, correcting downwards to a long-term upward trend for over three months. During this time, the price reversed at 390.62 (Murrey level [ 1/8]), returned to the main Murrey trading range, and has been testing the 328.12 level (Murrey level [5/8]) for about two weeks, consolidation below which will allow the asset to reach the 312.50 (Murrey level [4/8]) and 296.88 (Murrey level [3/8]) area. In case of a breakout of the pivot level of 343.75 (Murrey level [6/8]), the upward dynamics may resume to the targets of 375.00 (Murrey level [8/8]), 390.62 (Murrey level [ 1/8]).

Technical indicators allow for a continuation of the decline: Bollinger Bands and Stochastic reverse downwards, and the MACD histogram is stable in the negative zone.

Support and resistance

Resistance levels: 343.75, 375.00, 390.62.

Support levels: 328.12, 312.50, 296.88.

Trading tips

Short positions may be opened below 328.12, with the targets of 312.50, 296.88, and stop loss 339.00. Implementation period: 5–7 days.

Long positions may be opened above 343.75, with the targets of 375.00, 390.62, and stop loss of 333.00.