The market showed some signs of weakness last week, putting a pause on the rally that traders and investors have gotten so used to over the past several weeks. However, some weakness early on to start this week could present us with a great opportunity when looking at our trade of the day on Lowe’s (LOW).
LOW had previous resistance, now turned support, around that 220 area, but now, prices have risen significantly through this level toward 230. If the market shows weakness again today, we could get a pullback to 226 that could set us up nicely for a long entry. If we push through the top line of resistance at 235 we could see price rise all the way toward 240 before seeing another pullback.
Again, this all depends on how the market acts to start the week. If this is another weak week, then price could very well fail that 226 level and send us all the way back down to previous support of 220 before finding any sort of relief bounce. As the week kicks off, be sure to keep this home improvement giant high on your list of trades to be watching.
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