Are the Bears Shopping at Home Depot?Bears could be shopping at Home Depot as interest rates rise.
The first pattern on today’s chart is the $420.61 level. That’s where the home-improvement chain peaked in late 2021. It pushed slightly above that price area this month before reversing lower. Some traders may view that false breakout as a potential reversal pattern.
HD fell sharply about a week later, making a low of $404.37. The stock continued downward the next session and been mostly trapped below that October 21 low since. That may suggest that new resistance has developed.
Third, price action since the drop could be viewed as a potential bear-flag pattern.
Next, the 8-day exponential moving average (EMA) is near a potential cross below the 21-day EMA. MACD is also falling.
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