Current trend

Shares of The Home Depot Inc., the largest home improvement company, are trading within the medium-term uptrend: currently, the price has reached a reversal level of 406.25 (Murrey level [2/8]) and is trying to consolidate above it. If successful, the quotes will be able to continue rising to the central mark of the main Murrey trading range of 437.50 (Murrey level [4/8]) and further to the level of 453.12 (Murrey level [5/8]). The key for the "bears" is the 390.62 mark (Murrey level [1/8]), supported by the lower line of Bollinger Bands, with a breakdown of which downward dynamics will intensify to the targets of 375.00 (Murrey level [0/8]), 369.38 (Murrey level [1/8]) and 343.75 (Murrey level [2/8]).

Technical indicators confirm the possibility of further growth: Bollinger Bands are horizontal, but Stochastic is reversing up, and MACD is increasing in the positive zone.

Support and resistance

Resistance levels: 406.25, 437.50, 453.12.

Support levels: 390.62, 375.00, 369.38, 343.75.

Trading tips

Long positions can be opened from the 413.00 mark with targets of 437.50, 453.12 and a stop-loss around 400.00. Implementation period: 5–7 days.

Short positions should be opened below the level of 390.62 with targets of 375.00, 369.38, 343.75 and a stop-loss around 403.00.