LOW unable to break through key resistance level
Lowe's Companies Inc. (LOW) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
LOW finished the month 10.21% higher at 148.91 after losing $0.29 (-0.19%) today, underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (LOW as at Jul 31, 2020):
Friday's trading range has been $3.31 (2.21%), that's slightly above the last trading month's daily average range of $2.99. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly 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 146.61 and 149.92 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on July 9th, LOW actually gained 1.34% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
Unable to break through the key technical resistance level at 149.65 (R1), Lowe's Companies closed below it after spiking up to 149.92 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. The market was sold again around 149.92 after having seen highs at 149.90, 149.81 and 149.78 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior three Highs" stand out. Its common bearish interpretation has been confirmed for Lowe's Companies. Out of 20 times, LOW closed lower 65.00% of the time on the next trading day after the market condition occurred.