The party may be over for Home Depot, Inc. HD.
In early March, the stock began a steep uptrend. In late April, shares consolidated. At the time the $320 level was support before the stock moved even higher.
But things may be about to change. Over the past week, shares have been trading close to $320 and now it looks like the level is breaking.
Support is created when a large concentration of buyers gathers around the same price level. There’s more demand than supply, so sell-offs end when they reach support levels.
Sometimes, the support provides only a temporary halt in the stock’s decline. After an extended battle, the sellers eventually overpower the buyers and the downtrend resumes.
This could be the case with Home Depot.
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