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The disappointing results from Lowe's (LOW)  Wednesday morning is adding additional pressure to Home Depot (HD) . Home Depot has been weak since this week began and is now trading near the lows of the month. With a rather ominous spike high in place from May 16, overhead pressure is gaining steam. The stock is stabilizing a bit now but further downside is likely and with it, a very low-risk entry opportunity for patient investors.

In late April, HD began a new rally leg after taking out heavy resistance near the $150.00 area with an upside gap. The stock stretched the powerful post election rally another 5% before beginning to show signs of exhaustion just ahead its May 16 earnings report. HD opened that day with its biggest upside gap in over a year, but was unable to maintain the momentum. Since then, shares have been fairly heavy and appear headed lower before a new base is reached.

In the near term, HD will likely remain in limbo as overhead pressure builds. This will likely push shares down to what is now a major support zone near $150.00. The stock's March high is in this area as well as the powerful April 24 breakout gap. HD's upward sloping 50-day moving average is also now in this. For patient HD bulls, a dip down to this zone will provide a low-risk entry opportunity. Until then, the stock may prove a frustrating dip-buy.

Jim Cramer talks about oversold retail stocks on Real Money. Get his insights or analysis with a free trial subscription to Real Money.

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