LOW closes higher for the 4th day in a row
Lowe's Companies Inc. (LOW) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, LOW finished Thursday at 88.11 gaining $4.39 (5.24%), underperforming the S&P 500 (6.24%). Closing above Wednesday's high at 86.99, the market confirmed its breakout through the prior session high after trading up to $3.95 above it intraday.
Daily Candlestick Chart (LOW as at Mar 26, 2020):
Thursday's trading range has been $4.99 (5.8%), that's below the last trading month's daily average range of $7.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for LOW.
After spiking up to 90.94 during the day, Lowe's Companies found resistance at the 20-day moving average at 90.03. The last time this happened on February 4th, LOW actually gained 2.33% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Lowe's Companies. Out of 52 times, LOW closed higher 53.85% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.54% with an average market move of 1.25%.