HD Supply (HDS - Get Report) shares closed off the lows but still fell 4.2% to $39.10 in Tuesday's trading session, after reporting disappointing quarterly results before the open.

Shares had traded as low as $37.23, before rebounding on the day. Uninspiring second-quarter results were the culprit, although management's outlook certainly didn't help matters.

Earnings of $1.08 per share were in-line with expectations, while revenue of $1.62 billion missed analysts' expectations by $10 million and grew just 1.3% year-over-year.

It doesn't help that management now expects earnings between $3.45 and $3.60 per share, vs. a prior range of $3.52 to $3.70 per share and consensus expectations of $3.58 per share. Management also cut its revenue outlook to a range of $6.1 billion to $6.2 billion vs. a prior range of $6.25 billion to $6.35 billion and a consensus expectation of $6.26 billion.

A lackluster quarter is one thing, but cutting full-year guidance is far more disappointing. It's got some investors wondering if a test of the 52-week lows are on the table, currently down at $35.35.

Let's look at the charts.

Trading HD Supply Stock

Weekly chart of HD Supply stock.
Weekly chart of HD Supply stock.

A look at the weekly chart above reveals a few key technical support levels in HD Supply stock.

First, the 200-week moving average has played a key role in buoying HDS stock since 2017. Before that came along, though, a shallow-rising uptrend support level (blue line) has been in play, bouncing shares higher over the years.

These levels came into play near $37.50, and helped provide the bounce for HDS stock on Tuesday. The worry now is, what happens if these levels give way?

Should uptrend support and the 200-week moving average fail as support, HD Supply stock would be expected to test down into the $36 to $37 area. This zone has been notable since 2016, although losing key support to get there would be very discouraging.

Just below that is the 52-week low of $35.35 and beneath that, shares could fall into no man's land.

On the upside, the setup is simple. Bulls first need the 200-week moving average to hold as support. If it does, see if HDS stock can reclaim the 50-week moving average, which has been stiff resistance since June.

In other words, to hit new lows, HD Supply stock has to fall through a number of support zones. If it does, that's a very bearish setup. However, if it holds, perhaps it can snap out of its recent funk -- although the latest quarterly results aren't likely to help.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.