The Home Depot, Inc. operates over 2,300 stores in North America, specialising in tools, appliances, and services. Established in 1978, the company has shown consistent profitability, with its stock price following a bullish trend since 1981.
The stock has undergone several wave patterns, with wave ((I)) completed in 1983 at around 70 cents and pullbacks in subsequent waves. Currently, wave ((V)) is in progress since June 2022, suggesting potential buying opportunities at pullbacks.
Recent Analysis And Pullback Structure
Recent analysis indicates a pullback structure from a recent high at November 2024. Traders may buy from a blue box target of 367.15-330.33, aiming for potential long positions if certain price thresholds are met. The pullback may exhibit single or double correction patterns, which will be assessed based on price reactions in this area.
Home Depot has maintained a long-running uptrend, having demonstrated a well-defined wave structure over the years. Looking at historical movements, earlier large-scale waves completed as expected, followed by corrections before resuming the broader pattern. With wave ((V)) currently underway, those trading derivatives must be prepared for opportunities emerging during periodic downward movements.
Reviewing the latest pullback from November 2024, we see a structured decline forming. This correction is expected to present an opportunity between 367.15 and 330.33, a range where buyers may become active again. When prices approach this zone, attention shifts to whether the pullback unfolds in a straightforward manner or extends into a secondary, more complex formation. The response from the market in this area will provide clarity on how the next movement shapes up.
Key Levels And Trading Approach
From our perspective, keeping an eye on price reactions at key thresholds is the most practical approach. If the support level holds, bullish positioning becomes viable. If additional weakness emerges, a steeper discount may present itself, providing an opportunity for adjustment.
History shows this stock retraces deeply at times before resuming its broader direction. Acting with patience, while waiting for confirmation, remains the best course of action here.
