Home Depot Reports Solid Earnings – But Is It Enough for a Rebound?

This morning, Home Depot released its quarterly earnings, slightly surpassing expectations. While the stock is pushing into positive territory against the broader market trend, the key question remains: Is this enough to regain its former strength?

Technical Outlook: Key Levels to Watch

🔹 Resistance at $400:

• The $400 level will be a crucial test for buyers.
• Aggressive short traders might see this zone as a potential reversal area.

🔹 Support at $375:

• A sustained break below $375 could increase selling pressure and shift momentum in favor of the bears.

🔹 Bullish Scenario:

• A breakout above $400 could provide the stock with renewed upward momentum.
• If the broader market also shows strength, additional buying pressure could emerge.
• Target: A potential rally toward $424.

Conclusion

While Home Depot’s earnings were solid, the $400 resistance level will be key in determining the stock’s next move. A clear breakout above this level would support the bullish case, while a drop below $375 could open the door for further downside.

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