LOWC34 trade ideas
LOWAfter an initial bullish formation, LOW has gaped down below the ascending channel (as a result to earnings release).
Price gaped down into a cluster of price support (stipulated by the blue rectangle).
I am neutral currently on this stock until price has settled.
Nice possible ER move this week. Back down on the bottom side of the trading. One to watch this week. ER this week. 5/18
RETAIL WEAK CANDIDATE CLOSE TO CLOUD EARNINGS COMINGCCI AND PERCENT R BOTTOM RANGE SEE INOUR BOOK THE REASONS ON AMAZON HAVE SHORT AND MICRO CAP LONGS-RELATIVE STRENGTH WEAK-MONEY FLOW DECREASING-STOC ON DOWN SIDE-CLOSE TO BREAKING 50 MA-WEAK GROUP
Lows fails to break resistance After the most recent run up on Lows price failed to sustain a break through resistance set from previous highs. Good opportunity to short. Put a stop at the high from the mos recent high candle at $77.30.
LOW making new highsI looked at LOW a few weeks ago, just after it had gapped up past $60. For those who traded it on a short-term strategy a nice profit in excess of 100 points would have been banked. Those who took a longer-term stance will have seen their equity rise by 250 points plus - so far.
LOW continues to make new highs and, after a stickiness around $45-$55, looks to be on the move again. There was a similar move last year - although at the moment this one is proving to be more linear. Still a buy.
LOW going higherLOW has been trending up since late 2012 but the ride has not always been smooth. From November 2013 to August 2014 price was stuck in a prolonged pullback/consolidation around $50. Then in late August price broke above the November 2013 pivot high, retested it (see the weekly chart) with a spike below the resistance-turned-support and continued it's upward momentum.
On the daily chart LOW broke above the 19th September pivot high and a good opportunity to buy into this stock presented itself with the first gap up on 31st October. If you missed this then yesterdays gap offers a second opportunity.
Trading gaps is a near-term strategy but LOW looks in a position to trend over the longer-term, too, so this set-up could apply to either.
Lowe's Companies LOW price chart and fundamentalsNote the flatness of the revenues over the past few years and note how margins have fallen dramatically from their peak. All the while, the market cap has surged to nearly double what you might consider logical to pay for a company with almost zero growth in revenues and a weak position for profitability.
Would you pay $49 billion dollars for a company earning 2 billion a year?
Technically the chart is rolling over after a long, long, rally. Note the monthly chart above.
I already have a short recommendation on this chart on the daily time frame, and I thought it was relevant that LOW has the same lack of revenue growth as Best Buy (BBY). And all the talk about the real estate resurgence has investors all piled into this sector hoping for a profit boom to hit.
Thoughts? Comments? Next earnings due?
Tim 1:47PM EST, Jan 28, 2014 46.72 last -1.28 today or 2.65%
Looking for a pullback on LOWLooking heavy on the weekly chart in my opinion.
There is a pennant forming but the MACD and Bollinger
bands appear to want some give back before going higher.
The trendline support would offer a good buying opportunity
for 2013.
