HD expected to hold $300 support and bounce to $315-$320; short-term trade thesis.

Your next choice today is Home Depot. Also, the trend is downward as I see in this chart. So, I want to know how you are handling this stock, which is bullish, so I want to make sure you are happy with your two bullish trades today.

This was bound to happen sooner or later, wasn't it? As you know, Home Depot stock is trending downwards, but before we get into the technical details regarding Home Depot, let me clarify that what I'm looking for in this stock goes beyond what we see on the chart.

What we see in the chart may be very supportive at around the 300 level, and I will explain that shortly. What I'm specifically looking for at Home Depot is a return of the stock to any sector other than the technology sector.

Why do I like Home Depot stock? Well, that's from a technical standpoint. It looks like it will hold the 300 level. In fact, my strategy is based on the price holding steady at this level, then rising significantly.

This is a relatively short-term strategy. I will use the purchase option on October 16th. I will buy call options at 310 and sell call options at 315 in return. The best use of the price spread strategy.

In this case, I would use a price spread of $5 for call options at a discount of $1.70. It is simply a good strategy for predicting a price increase. There is no need to think of it as an investment strategy; this is simply an opportunity for the price to rise.

Let's assume, as you know, that we will hold the 300 level, then return to the 315 or 320 level, and then we will reassess, because all this trade needs is a strong bounce. I believe this reversal in the overall market environment will occur during the next few trading sessions.

We have Micron's earnings announcement a week from today, so there could be a potential catalyst.

But, looking at Home Depot's technical analysis, Rick, does the 300 level also catch your eye? Well, what I was focusing on here was more detailed. In general, the 300 level caught my attention.

But what I highlighted here was these lower levels that we saw, and then the subsequent drop to around 308 specifically. I also chose to set a level of approximately 289 or 290, which is the lowest level we have seen recently.

However, going back a little, we find a situation somewhat similar to the previous graph. We had a notable previous high at 354. Then we had the same double resistance pattern that appeared here, which again gave us an M-shaped pattern.

We had previous highs here, and subsequent lows here near the middle of the M, so to speak, near 322, and then there was a further decline. So, as we started approaching these lower levels, the 52-week levels that had formed, it looked like we were going to test a breakout of the channel upwards.

If we start with that, around the 300 level, some of those lower levels I mentioned earlier may come back into focus.

We now have our 50-day exponential moving average, which is just under 302. In contrast, if we manage to break through our channel, our 21-day exponential moving average, in the event of a breakout, is currently around 312.75.

The Relative Strength Index (RSI) is improving somewhat here. We have broken through our descending channel, or sloping trend line, and have also passed the oversold zone. We have already achieved relatively high levels during the last update.

This is positive information, especially since the stock has experienced a sharp decline so far. We note high trading volume here between approximately 300 and 305, and another high volume between 309 and 317.

These are potential accumulation zones to watch.

Looking at Home Depot stock, we find it down approximately 1.8% today at $299.89, slightly below the $300 level that it is expected to reach without settling at this level in this deal.