edumas2
Long

LOW- Getting any lower? Maybe not that much.

NYSE:LOW   LOWE'S COMPANIES INC
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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 (nailed some good pops as well.) Fortunately, I now have a game plan for those situations.
I am realizing that huge runs like $TECK and $PLCE are not as common as I would like to see them.
Got to bag those fast easy profits and move on... If I have several contracts / share, let a few run just in case as it does suck when you realize that you could have made 1200% on a call instead of 200-300%. It happened to me with $PLCE last summer.

What do we have here? Lowe is clearly not in the same league that HD , this is common knowledge but this does not mean that we can't make a buck with it if we have some wind in our back.

There is some decent support between $71 and $69.35 or so. The fat horizontal red line is the POC ... but it will move depending on how wide is your chart. The stock is also sitting on the blue Option Levels. Finally the Pink zone at the bottom is a fib level. It's easy to see based on the colors that price responded to the fibs pretty well. Just for the record, I am not a Fibs nuts. I am neutral about them. Many guys laugh at them but the bottom line is that many algos use them and that makes them "true." Just like floor pivots and other levels. Markets are sliced a million ways and Fibs are one of them.

Finally, the RSI below has not touched 40 yet... this is why I would not be surprised to see LOWE maybe drop a bit into the yellow zone where I drew a wiggly red line. If you got back on your own charts with the RSI you will see that Lowe (like so many stocks) likes to touch 40 on the RSI before bouncing. If it slices down through 40, be careful.

Up to you but personally I won't get in $LOW before it closes (end of day) above the diagonal red line going down from the recent top. Basically where the X is. Decent volume would be nice.

The market is bit tricky right now with the new year coming, the Russia-Obama tension and Trump taking over so I am not jumping ahead of the train on this one. I want to see some buying at support first. and price above $71.12 as a minimum.
Should be a good one at support. Keep an eye on it. Happy new year!
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