- 1 Home Depot stock price closed at $301.09 with a decrease of -0.2% in the last trading session.
- 2 HD stock price trades above 20,50,100 and 200-day EMAs.
- 3 The year to date return of Home Depot is -5.14% while the three month return is 4.34%.
Home depot stock price has been in a consolidation zone ranging between $280 and $302 since the start of March. In January, HD stock price gained bullish momentum and started to rise from the low of $307.39.
The move helped stock price in creating a high of $341.47. After receiving rejection from the high, Home Depot stock price gained enough bearish momentum to shatter the support level of $309.50.
The drop led to the formation of support at $280 level. Since then, the price has been stuck in a consolidation zone. The previous candle did shatter the resistance level of $302 but did not close above it. The candle again entered into the consolidation zone.
A candle needs to break and close above the resistance level for confirmation of a breakout. On the other hand, if the bears can push the price below the lower wick of the previous candle, there is a higher probability for the price to head toward the $290 level.
Home Depot Quarterly Estimated Revenue Miss
The recent quarterly report of the home improvement retailer was not encouraging. In 2023, Home Depot reported its biggest revenue miss in 20 years. The consensus estimated the revenue to be $38.31 Billion, but the company reported a revenue of $37.25, a miss of -$1.05 Billion (2.76%).
Per the company, the results were disappointing because fewer customers were purchasing big ticket items. This indicates that consumer spending could be slowing which might lead up to a possible recession.
Home Depot has also started to ship supplies of air filters, respiratory masks, box fans and air scrubbers to meet increased demand in areas dealing with poor air quality.
Will HD Stock Price Finally Have a Breakout?
HD stock price has crossed 20,50,100 and 200-day EMAs positively indicating rising bullish momentum in the price. The Chaikin money flow score is 0.07 rising from the 0 mark indicating strength in the market.
RSI trades at 57.96 suggesting bullish strength. HD price has reached the upper band of bollinger indicating a chance of short term pullback in the price at least till the 20-Day SMA of bollinger.
The market structure and price action of Home Depot is currently in an indecisive state as price is still stuck in a consolidation zone. HD price is slowly showing signs of bullish momentum and did shatter the resistance level but price again entered into the consolidation zone.
A candle needs to break and close above the recent resistance level for a bullish confirmation. The only concern is regarding the previous candle which closed bearish as if the next candle can break the lower wick, traders might witness a potential short term pullback.
Major support: $280 and $268
Major resistance: $302 and $340
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.