Current trend

Shares of The Home Depot Inc., the largest home improvement company, are moving within the medium-term upward channel: last week, quotes tested the upper limit of the main Murrey trading range at 375.00 (Murrey level [8/8]), but could not break above it and began to decline.

Currently, the quotes are close to the reversal level of 359.38 (Murrey level [8/8]), consolidation below which will ensure the exit of the trading instrument from the ascending channel and strengthening of the downward dynamics towards the targets of 343.75 (Murrey level [4/8]) and 335.94 (Murrey level [3/8]). The key mark for the bulls is 367.19 (Murrey level [7/8]), consolidation above which will open up the opportunity to resume growth towards the targets of 382.81 (Murrey level [ 1/8]) and 390.62 (Murrey level [ 2/8]).

Technical indicators confirm the probability of resuming the upward movement: Bollinger Bands and Stochastic are reversing up, MACD is decreasing but remains in the positive zone.

Support and resistance

Resistance levels: 367.19, 382.81, 390.62.

Support levels: 359.38, 343.75, 335.94.

Trading tips

Long positions can be opened above the 367.19 mark with targets of 382.81, 390.62 and a stop-loss in the area of 360.00. Implementation period: 5–7 days.

Short positions should be opened below the level of 359.38 with targets of 343.75, 335.94 and a stop-loss around 366.00.