Don't Ignore This Chart

Lowes (LOW) Constructs A Small Base


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

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is also the author of Stock Charts for Dummies (Wiley, 2018). Learn More
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