Don't Ignore This Chart

Lowes Holds Support and Forms Potential Reversal Pattern

Lowes (LOW) successfully tested the 71 area twice in July-August and surged above short-term resistance this week. At the risk of jumping the pattern, the two semi circles show a double bottom taking shape and a break above the August high would confirm this bullish reversal pattern. Also notice that the stock gapped down on August 23rd and dipped below 71 during the day (red oval). The stock recovered that day and subsequently closed above 73. More importantly, the stock continued its recovery with a move above the gap high and a break above short-term resistance at 76. 

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--Arthur Hill CMT

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