Home Depot stocks have been actively decreasing amid the general market correction for the last weeks. The decline from maximums raised 15% but at the end of January, it was able to bounce from the 200-daily moving average.
However, the bounce was not a signal to the active rebound and the last two candlesticks indicate one more attempt to check the strength of the line of the 200-daily moving average. Formed by the last candlestick, a “hammer” can help “bulls” to take the initiative.
In case of the hold of the level of 351, a possibility for the upward movement to the formed gap at 385.8 will be given.