Swing Trade Idea (HD) – August 10, 2023
Our bearish trade for Thursday, August 10th is The Home Depot Inc. (HD). HD is part of the Consumer Discretionary Sector, which has performed at -0.83% over the last month, with HD now starting to pull back from recent highs, at -0.09% over the last week.
This is a counter-trend trade on HD that is currently bullish but traded into an area of resistance and a pullback to lower levels is expected over the duration of this trade. The Consumer Discretionary Sector is showing weakness and is already trading lower and we expect HD to follow suit. The next area of support is at $310 and then $300.
As a close, if HD were to trade above $333 for multiple days, this would invalidate our analysis and would consider cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves below $3.58.