Here’s the low down on Lowe’s (LOW) (March 23, 2015)
I want to look at Lowe’s ( NYSE:LOW ); you can’t hardly look at Lowe’s ( NYSE:LOW ) without looking at Home Depot ( NYSE:HD ), they’re in kind of the same type of configuration. Nice uptrends, they’re up here in the winner’s circle but they’ve been consolidating for a while. Again, we’ll go back, they look pretty much the same.
Here’s what I like about Lowe’s ( NYSE:LOW ) versus Home Depot ( NYSE:HD ); first of all Lowe’s is closer to my home so I go to Lowe’s, that would be the big reason, I like the blue aprons rather that the orange ones, though I’m sure those are nice too.
But with this, the Bollinger Bands are a little bit tighter so the stock’s squeezing a little bit tighter. We like to see this prolonged consolidation at close to a top here, and this is what I’m seeing here, we’ll call it $76.00. So the stock’s consolidating 60 cents below, actually even today it has surpassed that. So this stock is knocking at the ceiling, not the door, but it’s really bumping up against the ceiling and it’s trending sideways. I’m looking at this; I look at the weekly chart and see how this has created quite a base, a high base that the stock is still accelerating out of.
So what I would suggest doing is, pay attention to the 50-day moving average, if it breaks out more then go ahead and buy that. But even if it doesn’t, because again it’s pushing up against here and I think this is really bullish action, strong volume, this is for those of you who are more patient investors.
If the stock happens to pullback to the 50-day moving average, or just drifts sideways long enough to touch this 50-day moving average; it worked pretty well here, worked pretty well there so it doesn’t really hit the 50-day moving average that often, so if it does that’s a great time to buy, if you are a longer-term investor.
If you’ve got a shorter mindset then if the stock breaks out above this little squeeze go ahead and take this thing for a ride, but just know that it’s going to move up and then ultimately drift to the side. So a breakout buy is not going to be the type thing that’s going to scream up to $100.00, it’s not. You would probably make some money on it but just have your expectations framed according to what you’re seeing on the chart; extended, strong, above the 50-day moving average, breakout could have some potential, but for a longer-term hold you’re praying for a pullback to the 50.
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