Shares of Home Depot (NYSE:HD) have been falling sharply in the last month. After topping out around $160, HD is trading below $147. Part of the issue is that Amazon (NASDAQ:AMZN) is encroaching on Home Depot's business. After chatting with institutional investors, and analyzing it myself, it appears there is a strong buy trade level approaching. The level is found by connecting the pivot highs from October 2016, May 2017 and August 2017. After connecting these pivot highs and drawing a trend line (as seen in the chart below) the line extends to $142.25. That will be a major support level. In addition, that's exactly where the daily 200 moving average lies.
That these two factors converge at this level gives investors a high reward, low risk buy on Home Depot.