Home Depot Hitting Critical Support Level
I am a bit unorthodox when it comes to looking at stocks and the moving averages that I use. For instance, many people look at the 200-day moving average, but I have never understood that. Why 200 days? It is a random round number that doesn’t really represent a pertinent time period.
When it comes to weekly charts I like to look at 13-week, 52-week, and 104-week moving averages. These three time periods represent one quarter, one year, and two years. Those time periods seem relevant to me.
With these moving averages in mind, Home Depot (NYSE: HD) is hitting its 104-week moving average at this time and it is only the third time in the last five years that the moving average has come in to play.
The stock is oversold based on the weekly stochastic readings and the 10-week RSI was in overbought territory a few weeks ago. There has only been one other instance in the last five years where both of these oscillators were in overbought territory at the same time and that was in October 2016.
If the stock should drop below the 104-week moving average, it would be a very bad sign for it. There is minor support in the $150 area and the next layer of support after that would be in the $130 range.
Home Depot has great fundamentals with an EPS rating of 94 from Investor’s Business Daily and an A in the SMR rating system. This means the company has seen earnings growth over the last three years that is better than 94% of companies. The SMR rating measures sales growth, profit margin, and return on equity. An A rating is the highest rating a company can get.
HD sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for HD moved above the 200-day moving average on September 02, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HD advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 278 cases where HD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for HD moved out of overbought territory on September 12, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for HD turned negative on September 17, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
HD broke above its upper Bollinger Band on September 11, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. HD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: HD's P/B Ratio (38.911) is very high in comparison to the industry average of (6.217). P/E Ratio (28.348) is within average values for comparable stocks, (74.104). HD's Projected Growth (PEG Ratio) (4.430) is slightly higher than the industry average of (1.976). Dividend Yield (0.022) settles around the average of (0.035) among similar stocks. HD's P/S Ratio (2.511) is slightly higher than the industry average of (1.132).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a retailer of assortment of building materials and home improvement products
Industry HomeImprovementChains
Advertisement