Home Depot (HD) shares are maintaining an upward trajectory, reaching an all-time high of $436 in December 2024. Unlike the peak of $420 in December 2021, this time, prices are consolidating rather than reversing. The overbought technical pressure has eased, creating an attractive buying opportunity. Additionally, a diamond pattern has formed, reinforcing the bullish outlook and suggesting a potential upside of 20–22% from current levels.
The middle line of the ascending channel is acting as the key technical resistance. Once this level is surpassed, the stock could accelerate its rise. A long position at $427–437, with a target of $495–505 (a 15% gain), could be a favourable trade setup. A stop-loss could be placed at $372 to manage downside risk.