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Home Depot Flashes Downside Move

Published 08/29/2017, 12:46 PM
HD
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Home Depot Inc. (NYSE:HD) was one of the market's leading stocks until May 16 when it peaked at $160.86 a share. Since that high pivot, the stock has been making a series of lower highs on the daily chart. When a stock forms this type of pattern it usually indicates lower prices ahead before a significant bottom is formed.

Support

At this point, HD is trading below the important 50-day moving average, which signals weakness in the near term. Traders should note that the next major support area on Home Depot's chart is around $139, which is a level where the stock broke out in February 2017. Often, former break-out levels serve as major support when retested.
Home Depot

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