LOW seems forming a head & shoulder formation & shaping up nicely for a short trade.
To trade this we would consider $72.50 / 70 Jun/July Puts.
You can check detailed analysis on LOW in the trading room/ Executive summary link here-
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Time Span- 43:40"
Trade Status: Pending
I am not long yet but here's my game plan for Lowe.
I have to humbly admit that I was in Lowe when if popped to $76 with some calls... but I rode the fade until I had a small loss ;-) From a significant gain to a small loss. Hats off to the faders on this one ;-)
I was pretty new at this game and I did lose some easy profits like this in the last few months...
After an initial bullish formation, LOW has gaped down below the ascending channel (as a result to earnings release).
Price gaped down into a cluster of price support (stipulated by the blue rectangle).
I am neutral currently on this stock until price has settled.
CCI AND PERCENT R BOTTOM RANGE SEE INOUR BOOK THE REASONS ON AMAZON HAVE SHORT AND MICRO CAP LONGS-RELATIVE STRENGTH WEAK-MONEY FLOW DECREASING-STOC ON DOWN SIDE-CLOSE TO BREAKING 50 MA-WEAK GROUP
After the most recent run up on Lows price failed to sustain a break through resistance set from previous highs. Good opportunity to short. Put a stop at the high from the mos recent high candle at $77.30.
I looked at LOW a few weeks ago, just after it had gapped up past $60. For those who traded it on a short-term strategy a nice profit in excess of 100 points would have been banked. Those who took a longer-term stance will have seen their equity rise by 250 points plus - so far.
LOW continues to make new highs and, after a stickiness around $45-$55, looks to be...
LOW has been trending up since late 2012 but the ride has not always been smooth. From November 2013 to August 2014 price was stuck in a prolonged pullback/consolidation around $50. Then in late August price broke above the November 2013 pivot high, retested it (see the weekly chart) with a spike below the resistance-turned-support and continued it's upward...
Note the flatness of the revenues over the past few years and note how margins have fallen dramatically from their peak. All the while, the market cap has surged to nearly double what you might consider logical to pay for a company with almost zero growth in revenues and a weak position for profitability.
Would you pay $49 billion dollars for a company earning...
