Lowe’s Cos. (LOW) at a New High
Lowe’s Cos., Inc. engages in the retail sale of home improvement products. The firm offers products for maintenance, repair, remodelling, home decorating and property maintenance. It also provides home improvement products in the following categories: appliances, bathroom, building supply, electrical, flooring, hardware, paint, kitchen, plumbing, lighting & fans, outdoor living, windows and doors.
Take a look at the 1-year chart of Lowe’s (NYSE: LOW) below with added notations…
LOW had hit resistance at the $171 level (green) on multiple occasions over the past couple of months. Now that the stock has broken above that resistance, while also hitting a new 52-week high, overall higher prices should follow.
The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A failure to hold $171 could negate the expectations for a higher move.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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Christian Tharp, CMT
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