Shares of Home Depot (HD) - Get Report have been bumping up against a significant resistance area over the last two weeks. The powerful momentum that has carried the stock more than 11% higher since its latest earnings report appears to have dried up.

For patient Home Depot investors, the result could be a very-low risk entry opportunity for this A-rated company.

Just prior to Home Depot's Nov. 15 earnings release, the stock experienced a big post-election jump. But just ahead of the news, Home Depot sold off hard and was quite weak on Nov. 15 as well. The next day, the stock returned to rally mode, leaving behind a major bottom near $120 in the process.

Since the low that day, the stock has been steadily trending higher while leaving multiple support levels in place. As shares begin to show signs of exhaustion, a healthy pullback to initial support is likely.

Home Depot has struggled with the $137 to $139 area since mid-April. Home Depot has five monthly highs in this zone, including a pair of key downside reversals during the August topping process.

A pullback from this zone appears to be on the way. As this plays out, Home Depot bulls should view a fade back down to the $132 to $130.50 area as a low-risk entry opportunity. This key support zone is marked by the October and November highs as well as the 200-day moving average. A new base here would set the stage for a fresh rally leg.

Click here to see the below chart in a new window.

Image placeholder title

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