LOW LONGWatch for LOW to break the ascending triangle and push to new ATH. Should happen in the next few days so 8/7 calls look really good right now.
LOWC34 trade ideas
Lowe's climb can continue on strong home-building dataIntroduction
Strong upward momentum for Lowe's has been slowing lately along with the rest of the market. However, I think the upward march for this stock can continue for both fundamental and technical reasons.
Fundamentals
Like nearly every other stock in this market, Lowe's is trading at a higher multiple than the stock has traditionally traded at. Unlike nearly every other stock in the market, the Lowe's multiple is actually justified by the prospect of future growth. Fidelity and Zack's both calculate the PEG ratio on Lowe's to be close to 1, which is fair value. Most stocks are trading at PEG ratios between 2 and 8 right now, making Lowe's one of the most attractively priced stocks I've seen lately.
Lowe's boasts strong ratings from analysts, including a 9.2/10 Equity Starmine Summary Score, a 74/100 valuation score from S&P Global, and a "Leader" ranking for corporate governance from MSCI. Options traders are more bullish than bearish on the stock for both the short and long term.
Perhaps more importantly, Lowe's is sitting in an extremely strong sector. Today, mortgage applications data beat by a wide margin. Business spending data shows home building supply as one of the only sectors in strong expansion, with investment up 20% YoY. Homebuilder Taylor Morrison posted 24% sales growth with a large order backlog. Consumers have spent the pandemic doing home renovations, and as a result, economic data for the sector have consistently surprised to the upside.
In the medium term, the big risk for this sector is that mortgage forbearance will expire, houses will go into foreclosure, and real estate prices will collapse. That's currently scheduled to happen on August 31, but there's been talk in Congress of extending forbearance until sometime next year. Currently more than 8.5% of mortgages are in forbearance, so this is a potential residential real estate apocalypse if Congress doesn't pass an extension. If you take this trade, keep a close eye on what happens with that expiration date.
Technicals
Note the hidden divergence I highlighted on the chart, with the MACD making a lower low as the price made a higher low. However, it's also important to note that Lowe's today has dipped below its 3-month trend line, albeit not with any conviction or volume. I've taken a small nibble here to satisfy my FOMO, and set an alert to buy more near the volume support at $130.30. I may look at buying a call option for the end of August, since Lowe's reports earnings on August 18.
LOW 170looking like it fell out of the uptrend. Would wait for a couple more candles but earnings probably amazing
LOW looking to reach ATHAscending triangle heading into an area of high confluence. Looking for a push up next week into ATH. Higher lows and higher highs and pushing into resistance. Long term trendline indicated by dotted lines is still intact.
V Bottom/Ascending Triangle/Overbought/Rising Wedge? Lowe's has been spectacular and ran right back up to top it's prior high. It has pulled back a little since hitting that high but not sure if it is enough
I see an ascending triangle but I also see a small rising wedge , and the stock has yet to fall out, but is hanging on the bottom. The stock is overbought on Stochastic's but not on RSI . Too iffy for me so I will watch this for now I think. If she blows upward without any further pull backs, then I guess I missed out )o:
Lowe's - Would it be a downturn from here?Unless it breaks the resistance and similar to the previous three times, this seems to be going down to the 110s. I'll buy it then for the next wave up.
LOW is in uptrend and our system showed a buy triggered signalIt is in uptrend and retracement to be finished.
Long Term Positions - $HD $LOW $RH $W (Watchlist Candidates)These stocks look extremely overbought to my eyes. Add them to your watchlist for a long term short play. Will need to monitor them for momentum change / Divergence.
Just from the looks of it, W is already showing early signs of divergences (if it doesnt make a new high above 210 for the divergence to stay). These could be the next big short, if you enter with a good, defined risk trade.
- Do Not Pick Up Shorts yet.
- These are components of DJUSHI (Dow Jones United States Home Improvement Retailers Index). Google DJUSHI for more information. The economical impact that is about to unfold will start to weigh in on this industry.
Reason I am selecting them for the next set of short to watch for is because of strength in this sector. Until the strength fades like mentioned above, I will stay long. More to come into the watchlist, as we see some rotation.
LOW Sell SetUp?I dont know 4u guys, but im selling this one.
Additionally, take a look at H1, W, M.
RR will be 2:5
Nathans pitch ForksLike this back to its highs I know in New York lot of people Did Covid Home projects
LOW - 5/19/2020LOW - Ichimoku chart shows the tenkan sen is overlapping with kijun sen again, likely repeating the 4/24 history and go higher. Nice green cloud in the foreseeable future. Overall call volume is x1.5 higher than puts.
$LOW high Expectation at LOWES
Whether it be the 100's of small DIY jobs the husbands finally got round to doing
or the gardening that was negated for years, it is anticipated that spending on our homes should be good for LOW .
Much may depends on HD earnings this morning , so we await a signal form that
$LOW Load 120c ER play MAY 22If u ready to take risk through er hold them, or sell them before er, easy 120 Insight
Short LOWLowe's hardware store, overextended bounce on low volume, now rejecting off longer term trend line and heading back to value area. First target 104.5, then breaking below trendline to find temporary support at 82.
LOW is going upLOW will still go up until it hits the resistance which is $120.25. once it hits the resistnace it is going down and the uptrend will stop.
