Hey Traders,

I hope you were paying attention.

We talked about Home Depot (Ticker: HD) last week in the new Pit Report.

And did you see what Big Orange just did?

It actually did exactly what I spelled out for you.

That’s right.

Mark Sebastian did the fundamental analysis and I followed up with a technical chart reading analysis.

Last Friday, I said …

HD has been trading in a range from $311.55 to $328.90 for most of the last two months, with the exception of a quick two-day trip up to $347.25.

If the hanging man candle pans out and HD opens lower and trades below the $328 level, the downside support levels come in at $320, the 50-day moving average at $315.57 and $311.

HD struggled to close above that $328 level and traded lower:

If you hopped into HD on the downside on the afternoon of Jan. 18 under $326, you could have ridden it down to that $311 level.

It has now closed back above $311, back into that trading range, and may be ready for a bounce.

Trade accordingly!

Thanks for Reading …

Licia Leslie