LOW closes higher for the 2nd day in a row
Lowe's Companies Inc. (LOW) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LOW ended the month 3.66% higher at 135.12 after gaining $1.60 (1.2%) today, slightly underperforming the S&P 500 (1.54%). Trading up to $1.17 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 25th, LOW actually lost -1.79% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LOW as at Jun 30, 2020):
Tuesday's trading range has been $2.81 (2.09%), that's below the last trading month's daily average range of $3.45. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for LOW.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 136.71 where further buy stops might get activated. With prices trading close to this year's high at 137.29, upside momentum could accelerate should the share be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Lowe's Companies. Out of 299 times, LOW closed higher 57.19% 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 64.88% with an average market move of 1.21%.