Lowe's Cos. (LOW) has turned lower since early May, breaking below the now-declining 50-day moving average line. Prices are sitting right on the flat 200-day moving average line and look vulnerable to further declines.
Let's visit with the latest charts and indicators to see
In this daily bar chart of LOW, above, we can see how the stock price has given back much of its November to May advance. If you look closer at the decline last month, you should see a gap to the downside with a sharp increase in volume. This is when the On-Balance-Volume (OBV) line turned down.
Earlier this month, LOW bounced to the upside, but stopped short of the declining 50-day moving average line. We already mentioned the 200-day moving average line, and a close below $76 should break it. The Moving Average Convergence Divergence (MACD) gave an outright sell signal in late May, when it moved below the zero line. The MACD oscillator remains in a bearish configuration.
In this weekly bar chart of LOW, above, we can see how prices have made a large inverted triangle or a broadening pattern going back to 2015. Prices have crossed above and below the slightly rising 40-week moving average line many times since 2015, and the current test of this line has my attention.
Note how the weekly OBV line has been in a decline since early 2015, suggesting a weakening situation. The weekly moving average convergence divergence (MACD) oscillator turned down last month, with a take profits sell signal.
In this Point and Figure chart of LOW, above, we can see the recent column of Os has turned this chart bearish, with a potential downside price target of near $70.
Bottom line: With all three of these charts (above) looking weak, I would anticipate further price declines for LOW in the weeks ahead. A close below the 200-day moving average line could be the trigger. $70 is our first downside price objective and the November lows around $66 could be an intermediate-term target.