Current trend

The shares of The Home Depot Inc., the largest home improvement company, are moving in a correction trend at 361.00.

The company has fully completed the purchase of SRS Distribution Inc., which will significantly expand the range of roofing materials sold. The final purchase price will be 18.25B dollars. According to published data, sales last year amounted to about 10.0B dollars, which will increase The Home Depot Inc.’s revenue. Following the deal’s completion, Jefferies Group analysts maintained the issuer’s stock rating at Buy, raising the target price to 426.0 dollars from 412.0 dollars. Stifel Financial Corp. experts adjusted this indicator from 374.0 dollars to 380.0 dollars with the rating at Hold with a forecast for an increase in revenue by 10.0B dollars and EBITDA by 1.1B dollars by the end of the year.

The financial report is due on August 13: total revenue may be 42.57B dollars, and earnings per share – 4.58 dollars, down from 4.65 dollars in the same period a year earlier.

Support and resistance

On the daily chart, the trading instrument is moving within the corrective trend below the high of early July at 370.00.

Technical indicators may begin to strengthen the buy signal: fast EMA on the Alligator indicator are above the signal line, and the AO histogram is forming corrective bars in the buy zone.

Resistance levels: 365.30, 385.30.

Support levels: 354.40, 332.00.

Trading tips

Long positions may be opened after the price rises and consolidates above 365.30, with the target at 385.30. Stop loss — 360.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 354.40, with the target at 332.00 and stop loss 360.00.