After spending most of the last year stuck in the yellow zone of the SIA S&P 100 Index Report, home improvement retailer Lowes Companies (LOW) has returned to the Green Favored Zone. Continuing an ascent up the rankings which started back in May, Lowes finished in 26th place, up 4 spots in the last day. Check out this textbook breakout! Lowes Companies (LOW) spent nearly a year building a bullish Ascending Triangle base following an early 2022 selloff. Last month, the shares broke out over $220.00, successfully completing the base. They then retested the $220.00 breakout point establishing it as new support and confirming the breakout.
Yesterday, LOW rallied again to reach its highest close since March of 2022, confirming that a new upleg is underway. Next potential resistance appears at the December 2021 peak just below $260.00, then near $265.00 based on a measured move.
After selling off in the first half of 2022, Lowes Companies (LOW) shares bottomed out at a higher low a year ago. Since then, they have been under renewed accumulation and have resumed their primary upward trend. Earlier this month, LOW completed a bullish Double Top breakout that signaled the start of a new upleg.
Iniitial upside resistance appears at a previous column high near $234.15, followed by the $258.50 to $274.35 zone where the late 2021 peak, several vertical counts and a horizontal count cluster. Initial support appears near $207.90 based on a 3-box reversal.
With a bullish SMAX score of 9, LOW has been exhibiting strength against the asset classes.
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