Boosted by a positive earnings report, home improvement retailer Lowes Companies* (LOW) continues to steadily march toward the top of the Green Favored Zone in the SIA S&P 100 Index Report. Yesterday the shares climbed another 3 positions to 5th place and they are up 12 spots in the last month.
This 3-year candlestick chart highlights the strength of the current staircase accumulation pattern in Lowes Companies* shares with rallies followed by pauses at increasingly higher levels. The current rally phase kicked off with a rally on volume up off of $175 channel support followed by a successful retest of uptrend support near $200. Yesterday, the shares traded at a new all-time high above $250 intraday, indicating continuing investor interest.
In addition to the $250 round number, measured moves suggests a cluster of potential upside resistance tests on trend may appear in the $275-$285 area, then near $320. Initial support appears near $225.
* Shares of Lowes Companies are held in portfolios managed by SIA Wealth Management.
Since April of 2020, Lowes Companies* (LOW) shares have been under accumulation, advancing in a step pattern of High Pole rallies followed by periods of consolidation at higher levels. After consolidating through the summer, the shares launched into a new rally phase with a Spread Double Top breakout back in September, an advance that continues to this day with the shares continuing to climb to new all-time highs.
Currently, the shares are approaching the $250.00 round number. Based on vertical and horizontal counts, potential upside resistance tests on trend appear near $260.70, $293.60, $330.60, and $350.90. Initial support appears near $226.95 based on a 3-box reversal.
With a perfect SMAX score of 10, LOW is exhibiting strength across the asset classes.
* Shares of Lowes Companies are held in portfolios managed by SIA Wealth Management.
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