- Home Depot Inc. announced its Q2-2023 financial report.
- The HD stock has witnessed a sudden drop in the past trading session.
The housing sector in the USA is currently facing high mortgage rates, which seems an unattractive market for potential home buyers. Meanwhile, retailers like Home Depot face challenges while pursuing their goals, but the central pillar of home improvement demands is holding up.
Home Depot Inc (NYSE: HD) Stock price has been facing selling pressure since September 14, 2023. The bearish sentiment has shattered the price action towards the support level of $304.51. However, the current panic selloff has heavily impacted the previous uptrend pattern. It shows that big market players willing to crack down on the bearish momentum.
HD stock price is trading below the 20, 50, 100, and 200-day EMAs, indicating the price has been struck down from the past several months’ growing trajectory. However, the EMAs suggest a higher possibility of a correction phase in the upcoming time.
The present market sentiment revealed a gain of 0.25% during the previous intraday session and the HD stock price is trading at $306.49. Moreover, the current market capitalization of Home Depot Inc. is $306.51 Billion. However, the average volume is 2.936 Million shares.
Q2-2023 Consensus of Home Depot Inc.
Despite the high mortgage rates in the USA, Home Depot Inc. is getting back on track slowly. However, one of the several factors is quarterly financial reports. Home Depot recently released its Q2-2023 consensus on August 15, 2023, surpassing earnings and revenue results.
The reported second-quarter earnings of $4.65 per share have performed better than the estimated $4.45 EPS by a surprise of 4.39%. Moreover, the reported revenue of $42.91 Billion outclassed the estimated revenue of $42.19 Billion. The Q2 consensus report more-or-less helped the price action to attain a resistance level of $338.17.
Will The Bearish Trend Sustain?
The HD stock price is currently showing signs of trend reversal with heavy involvement of sellers in the market, reflecting a potential short-term pullback. Since the past week, the HD share price has been experiencing a massive selloff, which diverted all technical parameters upside-down.
The Relative Strength Index (RSI) has been hovering below the 50 mark since September 14, 2023, while the RSI scored 28.51 during the intraday session. That indicates immense weakness, and the price has fallen in the oversold zone. However, a slight indication of the correction phase was witnessed in the RSI.
The CMF has been hovering below the 0.00 mark since the release of the Q2-23 consensus. The CMF is currently at -0.21, reflecting sellers’ dominance in the market, which shattered the price in a downward trajectory.
Conclusion
With the high inflation and mortgage rates, the housing market in the U.S. suffered drastically. Despite that, a company like Home Depot has continuously performed well. Yet, the recent price action discourages the traders and investors of the NYSE market.
Technical Levels
Major resistance: $341.47 and $338.17
Major support: $277.09 and $279.98
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.