Home Depot Earnings Preview: Key Technical Levels to Watch

Home Depot (NYSE: HD) is set to report earnings tomorrow, and its stock chart presents a mixed outlook, with technical indicators leaning bearish but earnings potentially shifting momentum.

Current Stock Performance & Technical Setup

• Current Price: $383.61 per share
• Key Pattern: A potential Head and Shoulders formation, signaling a possible 12% downside to the $336-$338 range.
• Support Levels: The 200-day moving average (200MA) aligns with this potential drop, where buyers may look to step in.
• Resistance Levels: If buyers maintain the price above $380, Home Depot could target a move back to $400, with a breakout possibly pushing toward $420-$430.

Indicators to Watch

• MACD (Moving Average Convergence Divergence): Currently bearish, suggesting downward pressure unless earnings provide a catalyst for recovery.
• 50MA Support: Acting as near-term support, a strong earnings report could spark consolidation or upside movement, especially as broader markets pull back from recent highs.

Earnings Impact: What to Expect

• A better-than-expected earnings report could fuel a move higher, potentially retesting resistance at $420-$430.
• Disappointing earnings may trigger a sell-off, reinforcing the bearish technical setup and pushing the stock toward the 200MA support zone.

Traders and investors will be closely watching earnings results to determine whether Home Depot can defy technical headwinds or if a further downside move is in play.