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Swing Trade Idea (HD) – March 5, 2024

Our bearish trade for Tuesday, March 5th is Home Depot, Inc. (HD). HD is part of the Consumer Discretionary Sector, which traded at 4.77% over the last month, with HD performing at 5.64% over the same period.

HD has been bullish for several months and has now traded into an area of resistance at $380. As it is already pulling back from this level, we expect to see this decline continue over the duration of the trade. The next area of support is at around $365 and then $340.

As a close, if HD were to trade above $385 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $3.89.