Home Depot - due to report earnings next week. Expected to report an EPS of $2.76 on revenue of $34.63bn

Home Depot’s shares trading at around $361.39 a share right now. The company’s shares have pretty much been moving sideways between June 2022 and October 2023. It was only in November 2023 that the market rally helped in a break towards the upside, breaking through the resistance of $346.84. We can see that sellers have tried to push the price lower in January, as well as caution in case of any significant market falls after what happened in 2022. The ascending trendline continues to remain in place, with the price recovering from any falls and closing above every candlestick. Baseline support is clearly at $264.24 and a 27% sell-off would be required for these levels to be reached again. There is a chance that in the near term, we could see some wobbles and potentially a pullback if the earnings are not satisfactory for investors. But this will have to be more assessed after the earnings. The next resistance sits at $375.05, a break and close above this level would allow investors to eye up the all-time highs of $422. Especially after so many stocks are well on their way to recovery from the 2022 crash. Looking at the technical indicators, the MACD is still positive after the Santa rally and so is the RSI as it reads 66. Home Depot is expected to report an EPS of $2.76 on revenue of $34.63bn.