Lowe’s Cos. (LOW) 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 (LOW) below with added notations:
LOW shot higher towards the end of August only to end up stalling between strong support of $201.5 (green) and a $212 resistance (red). Now that the stock has popped through the resistance, while also hitting a new high, another leg up should be underway for the stock.
LOW has broken to new highs. Long trades could be entered now, or on a pullback to the $212 level, with a stop placed underneath it.
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!
Good luck!
Christian Tharp, CMT
@cmtstockcoach