Home improvement retailer Lowes Companies (LOW) has rebounded from a brief trip down into the red zone and returned to the Green Favored Zone of the SIA S&P 100 Index Report yesterday for the first time since October. The shares finished yesterday in 25th place, up 2 spots on the day and up 12 spots over the last month.
A major breakout is underway in Lowes Companies (LOW) shares this week. A six-month consolidation phase has ended with the shares overcoming resistance and blasting through the top of a $150.00-$180.00 sideways trading range to a new all-time high.
Initial upside resistance appears near the $200.00 round number, then $210.00 based on a measured move from the recent trading range. Initial support appears at the $180.00 breakout point followed by the 50-day average near $170.00.
Following the completion of an initial recovery rally back in September, Lowes Companies (LOW) spent several months trending sideways consolidating their gains. In recent weeks, their primary uptrend has resumed with the shares completing a bullish Double Top breakout to signal the start of a new upleg and adding to a trend of bullish patterns including two previous Triple Top breakouts.
Initial upside resistance appears near $200.00 where a round number and a horizontal count converge, followed by $220.45 based on a horizontal count and $229.35 based on a vertical count. Initial support appears near $170.40 based on a 3-box reversal.
With a perfect SMAX score of 10, LOW is exhibiting near-term strength across the asset classes.
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