Lowe's Companies Inc (NYSE:LOW) had been on a strong run higher until it started a sideways movement after Thanksgiving. The price action was very interesting as it traced out a near perfect bearish Shark harmonic through to the beginning of March. It then retraced the entire pattern, making a double bottom at 44.50.
This raised the question of whether the it was time to buy. The pullback in June scared out many, but since then the price action has been tightening against resistance, and I am here to tell you the Low is in for Lowes. Well maybe that is a it premature but let me explain.
The chart above shows that Shark and the double bottom, but what is more interesting now is the ascending triangle forming at the far right of the chart. As the price approaches the top at 48.50 it has support for a push through from three other indicators. The RSI is in the bullish zone over 60 and rising. The MACD crossed up today. The Bollinger bands are opening to the upside. A push through that 48.50 level and the Low will truly be in for now. This would also establish a target of 52 from the pattern, which would be a new all-time high.
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