Lowe's Corp. (LOW) was last reviewed in the middle of May, where I wrote, "The price of LOW has turned up the past two weeks but with the 50-day average line still pointed down more work and basing needs to be done. Aggressive traders could put LOW on their shopping list but wait for a close above $90 before committing."
With LOW trading up around $109 I hope that traders did buy it in late May when it closed above $90. Now let's look at some new charts for a fresh strategy.
In the updated daily bar chart of LOW, below, we can see that prices rallied to around $100 in early June and traded sideways until Wednesday morning following the company's earnings report. Prices are above the rising 50-day moving average line as well as the bullish and rising 200-day average line.
The trading volume just below the price chart looks to be on the light side but the daily On-Balance-Volume (OBV) has been rising since late April and tells us that buyers of LOW have been more aggressive.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned up from the zero line for a fresh outright go long signal.
In the weekly bar chart of LOW, below, we do not have Wednesday's rally plotted. Prices are above the rising 40-week moving average line. The weekly OBV line has been neutral/flat for months.
The weekly MACD oscillator is touching but it is likely to turn upward with the current price strength.
In this Point and Figure chart of LOW, below, we can see the breakout at $108.68 and a potential price target of $133.11.
Bottom-line strategy: If you are long LOW from $90 I would raise sell stop protection to $98 to lock in some gains. Aggressive traders could add to longs above $110. The low $130's is our next price objective.