• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Consumer Discretionary

On Lowe's, The Chart Has Turned Up

But where are we going and when will we get there?
By BRUCE KAMICH
Dec 08, 2016 | 11:05 AM EST
Stocks quotes in this article: LOW

The price chart of Lowe's (LOW) has turned to the upside in recent weeks, as the animal spirits have returned to Broad and Wall Streets. LOW is a fair distance below its 52-week high, so let's check on the charts and our indicators to see how much LOW can deliver.

In this daily chart of LOW, below, we can see both the decline from the July zenith to the bottom last month. As LOW declined, it gaped lower and generated a death cross of the 50-day and 200-day moving averages. One positive on the three-month decline was that the On-Balance-Volume (OBV) line did not decline that much. There was selling, but the OBV line did not make a new low in October as prices made new lows for the move down.

In November, LOW dips three or four times below $66, which seemed to attract buyers. Another positive was the bullish divergence between the lower lows in price in September and November and the higher lows from the momentum indicator. Prices have rallied above the now-flat, 50-day moving average line and above the rising, 200-day line. The OBV line is inching higher, but has not made a new high for the year.

This three-year weekly chart of LOW, above, is interesting in what it shows and doesn't show. LOW has been stuck in a large sideways trading range for two years. Prices have just closed back above the slightly rising, 40-week moving average line.

The weekly OBV line peaked in early 2015, and it declined faster since this July. The weekly Moving Average Convergence Divergence (MACD) oscillator has just crossed to a cover-shorts buy signal. LOW has some chart resistance above $80. It could challenge the resistance above $80 in the weeks ahead, but we are likely to see some sideways trading the near term and intermediate term before an upside breakout.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Consumer Discretionary | Industrials | Consumer | Markets | Stocks

More from Consumer Discretionary

Put e.l.f. on the Shelf as the Stock Surges to a 52-Week High

Bruce Kamich
Aug 4, 2022 2:31 PM EDT

Here's why investors should consider taking profits now.

Mixed Earnings Bag Requires Diligence Among Momentum Traders

Bob Byrne
Aug 3, 2022 8:48 AM EDT

Stocks are moving abruptly and dramatically depending on which way quarterly reports go for the companies that deliver them.

Church & Dwight Reverses Direction After Earnings: What the Charts Say

Bruce Kamich
Aug 1, 2022 10:45 AM EDT

Shares of the consumer products company tumbled after quarterly results.

Bearish Bets: 3 Stocks You Should Consider Shorting This Week

Bob Lang
Jul 31, 2022 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

As I Screen for Value Stocks, Intel Becomes an Even Bigger Bargain Than Before

Jonathan Heller
Jul 25, 2022 10:00 AM EDT

The semiconductor giant is among the now 13 companies that have made it through this stringent sifting process.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:24 AM EDT PETER TCHIR

    Jobs Report Reaction: Incredibly Strong, But Questions to Ask

    An incredibly strong July jobs report. Not only d...
  • 08:54 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The Secret to Dealing With FOMO
  • 03:51 PM EDT REAL MONEY

    AMD Second-Quarter Earnings Live Blog

    Real Money's Eric Jhonsa covers 's second-quarte...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login