Chart of the week: Lowe’s
This week we’re going to be focused in on retail home building stock, Lowe’s Corporation; LOW is the symbol. Let’s take a look at this chart. It’s starting to look a lot better.
As you can see here from the low back in early July, the stock has made a nice series of higher lows here, and even some higher highs, which is our textbook definition of an uptrend.
But more recently, the stock has fallen off here and is kind of consolidating in a range over here. But I think that with the presence of some good volume here, a better/ improved Chaikin money flow – we have a buy signal on the MACD as well – I think this stock is pretty soon going to break out of this area here.
Certainly you can see the ceiling here at about the $275 level. That’s pretty strong. Relative strength is also kind of just going sideways here now.
I think that once we get away from this consolidation here, I think it could bounce around like this. Maybe back up there, come back down. Once it breaks out of that – get a confirmation above that box over there – we’re going to move back up to the $285 – 290 level and probably out to $300.
They had good earnings. They came back down a little bit. Not quite keeping up with Home Depot. But still, Lowe’s does have some good business with contractors and so forth.
So I think that this stock has got some really good possibilities here. Once it breaks out of this box here.
Take a look at Lowe’s. If you’re going to buy some options on this thing, maybe go out to January, February, maybe even March to buy some calls. And just sit there and wait for it to break out of the box.
That’s Lowe’s. Thanks so much for joining me everyone, and I”ll see you next time.
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