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- 1 Home Depot stock price (NYSE: HD) was down 5.09% in October 2023.
- 2 HD stock price entered a correction phase.
- 3 The 50-day EMA negatively intersects the 200-day EMA.
Home Depot Inc., HD stock price fell by 5.09% in October and the sell-off continued. The stock price faces resistance at $300.00 and reverses in the downward direction.
HD stock price forming a bearish pattern and short-term bounce is getting sold off. It indicates sellers are active and continuing their dominance on the higher levels.
Home Depot stock price is in a downtrend and the 50-day EMA negatively intersects the 200-day EMA inviting further decline.
In mid-September, HD stock price dropped below the crucial support of $321.00. It hurt the sentiments of long-term investors and prices entered into the correction phase.
Slow and steady prices declined and eroded the majority portion of the gains generated in 2023.
During the downfall, buyers tried to give the bounce to reverse the trend. However, due to the strong presence of sellers, prices faced rejection and continued the downward momentum.
However, the stock price has corrected a lot and is trading near the crucial support so correction might take a halt soon. Home Depot stock price closed the previous session at $286.77 with an intraday decline of -1.20%.
Will Home Depot – HD Stock Respect $280 Support?
HD stock price is inside the bears’ grip and no reliable signs of reversal are visible. Previously, the stock price took support near $280.00 and buyers came forward to push the price higher.
At present, the stock price is very close to $280, so investors expect that a similar pattern may be repeated.
Till the Home Depot stock price sustains above $277.00, the probability of bounce back remains high. However, the buyers will gain confidence and the price will pick up momentum when it regains the $300.00 mark.
Will Home Depot Stock Price Follow Indices?
Home Depot stock price fell for seven consecutive weeks and formed a bearish pattern on multiple time frames.
The broader market indices like Dow Jones, Nasdaq Composite, and S&P 500 are turning mildly bearish. So, if the downfall in the indices continues then it may affect the HD shares.
The MACD in HD stock is below the zero line but the curve is sloping sideways. It shows that the price may enter consolidation. However, the RSI at 30 indicates prices are oversold which increases the risk of short covering.
Conclusion
Home Depot Inc., HD stock price is in a correction phase and bears are continuing their dominance. However, the Home Depot stock is near the crucial support. So, it will be difficult for sellers to pull the price further down.
Technical Levels
- Resistance levels: $301.26 and $308.54
- Support levels: $277.19 and $270.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
