One Dow stock is about to snap its longest win streak ever

The Dow has been hit hard this year, but one darling of the index has had it even worse.

Home Depot has fallen 10 percent this year, tracking for its first negative annual performance since 2008. If it closes 2018 with these losses, it will snap its longest yearly win streak ever.

It’s crucial the stock holds one key level here, according to Todd Gordon, founder of

“The one thing that is a bit concerning here is this $170 level. This was the breakout. Of course, we’ve come back, retest. That now offers support because it was formerly resistance,” Gordon said Thursday on CNBC’s “Trading Nation.”

Home Depot was sitting right at $170 on Friday. The stock first broke above that level in November 2017. It hit a record high in September of this year, but has since tumbled 21 percent.

“If the broader market can stabilize, a big name like Home Depot might pop back above the $170,” added Gordon. “That $170 level is going to be key. I don’t care if we break it in spring, fall, winter or whatever. If we get back above, I’d say that’s the green light.”

Erin Gibbs, portfolio manager at S&P Global Market Intelligence, said macro factors could continue to buffet the home improvement retailer.

“Home Depot really has been declining ever since there have been concerns about the U.S. housing market and so that might weigh on the price probably for at least the next quarter if not farther,” Gibbs said Thursday on “Trading Nation.”

Existing home sales have declined every month since February, and the most recent data on new home sales showed a 12 percent slump in October.

Weakness in the housing market will weigh on Home Depot even if it continues to hit its targets, added Gibbs.

“Home Depot is an extraordinarily well-run company. They basically always beat their estimates. … They’re still very strong and expecting to grow faster than the broader economy,” said Gibbs. “But as long as you have these housing concerns weighing on them and people looking for negative revisions that will probably weigh on the price for the next few months.”

Home Depot has beat earnings estimates for every quarter since the October-December period in 2014. The company is next set to report on Feb. 26.

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