Lowes (LOW) perked up today. The chart shape is nice with multiple technical signals. The Relative Strength is making a minor signal with a break of the downtrend on the purple area panel. The SCTR is moving above 50 in the top panel which is ok but not great. I like it when it pushes above 75. I think what is particularly encouraging about the chart is the price was outperforming the $SPX before the big correction in the indexes. It looks poised to resume the run after moving above major horizontal support today.
The MACD is also giving us a positive divergence which is always encouraging. The stock trades lots of volume. I think a tight stop just under the 200 day moving average will probably make a nice trade.
Good trading and have a great weekend,
Greg Schnell, CMT, MFTA
