LOW still stuck within tight trading range
Lowe's Companies Inc. (LOW) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
LOW finished the week 1.27% higher at 137.43 after gaining $1.82 (1.34%) today on low volume, slightly outperforming the S&P 500 (1.05%). Today's close at 137.43 marks the highest recorded closing price ever. Trading up to $1.44 lower after the open, Lowe's Companies managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Wednesday, LOW actually lost -0.10% on the following trading day. Closing above Thursday's high at 136.94, the stock confirmed its breakout through the previous session high after trading up to $0.70 above it intraday.
Daily Candlestick Chart (LOW as at Jul 10, 2020):
Friday's trading range has been $2.82 (2.07%), that's slightly below the last trading month's daily average range of $3.30. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LOW. Prices continued to consolidate within a tight trading range between 134.05 and 138.25 where it has been caught now for the whole last trading week.
Prices are trading close to the key technical resistance level at 138.25 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 138.25 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 134.05 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Lowe's Companies. Out of 299 times, LOW closed higher 57.53% 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%.