Home Depot (HD) is sliding sharply since retreating from 138 in August. Note only has price fallen below the cluster of 200-, 100-, and 50-day simple moving averages (SMAs), it has fallen below a rising trendline. HD Daily Chart 9/12(click to enlarge)Broken support:- The 130-131 area provided some support factors. - There was a rising trendline and the 200-day SMA. - The fact that price fell below 130 suggests the preceding uptrend might have ended. - In the short-term, there is still downside risk towards 123.50-124, which is a June support pivot, and a support/resistance pivot going back to August 2015. Monitor resistance:- At this point, there is a bearish outlook due to the breakout.- However, we should note that the pattern of higher highs and higher lows is still in play under price falls below 123.50. - Now, if price does break below 123.50, we can have more confidence of a bearish outlook. - In this scenario, I would look at the 130-132 area as a key resistance against a subsequent pullback. - Or, if you are still bullish on HD, I would take a conservative approach, and limit the target to 130-132 instead of another high at 140, or even the previous high at 139. Or look for support first:- Before breaking below 123.50, I would not take that rising trendline breakout too seriously. - Note that after the previous 2 bullish divergence between price and the RSI, a bullish period followed. - If a bullish divergence develops in the coming weeks, we might look for a rally, but like I said before, be cautious of the 130-132 area.