LOW trade ideas
Lowe's testing resistance in an effort to set a new highIn our pre-market Monday Morning Flight Path newsletter, we noted that having been in a strong “Go” trend June through August, $LOW has consolidated sideways through September with rising lows and highs at the upper bound of the ascending triangle. We also saw upward buying pressure from the bulls pushing the lows higher. Additionally, a low-risk entry signal (green circle) had appeared on 10/1, suggesting that price might make an attack on the resistance above. The GoNoGo Oscillator found support at zero.
This week has seen price action follow the plan, with price now testing the upper bound of the ascending triangle and the GoNoGo Oscillator in positive territory. There may be resistance at these levels, but we'll be looking to see if the "Go" trend that is now in place with positive momentum can set a new high.
Rising WedgeEarnings are not until November so this one may recover from fall and go up more. I am just wondering how many buyers are left?
Average fall for a strong stock from a rising wedge at the top is 36%..they can fall much further though
Rising wedges create a shortage of buyers
I sold it last week and I may end up being sorry. I feel that if LOW messes up one iota, she will tumble. Too risky for me at this point
I had my target, met it, and may miss out of more great moves from a stock that has been wonderful all the way through the flu!
Has fallen from the bearish rising wedge and this may be as far as it falls. Targets from V bottom are higher so there is still wind left in the pattern
Congrats Lowes!
Not a recommendation
V Bottom Ascending TriangleHas had quite a run
LOW was in a very narrow rising wedge a while back, never fell from it but continued up in price and left it behind.
NV is high. 197 is a 100% target after reading the cup depth, but in a receptive market, a stock can go further
Support noted a 3 day pullback point and there will be support at top of A triangle
Not a recommendation
Be safe
LOW to Short, daily trendline breakWeekly Tweezers
Daily trendline break
Daily Double tops
Entry 164
Stop : 172
Target1: 150; risk/reward=1:1
Target2: 135; risk/reward=1:3
I am not a PRO trader. I need few months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
LOW:NYSE - LOWE'S COMPANIES - 150% home improvements runWas reading an article this morning on the "nesting economy" and they were saying that companies like Lowes and Home Depot have been doing particularly well lately. Lowes has had a 30% jump in revenue for their second quarter which includes a whopping 135% surge in online sales. Chart looks pretty good and not too much volatility. Nice and smooth. Has had a small pullback so might be back in a value area. Could be worth a look.
$LOWSeems to me that everytime lows beats earnings and revenue they still drop. ill wait until after earnings to start a long position.
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.
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.
