NEW BULLISH Plays
Lowe's Companies - LOW - close: 49.02 change: +0.55
Stop Loss: 47.75
Current Gain/Loss: unopened
Entry on October -- at $--.--
Listed on October 17, 2013
Time Frame: 4 to 6 weeks
Average Daily Volume = 6.8 million
New Positions: Yes, see below
Why We Like It:
LOW operates over 1,750 home improvement retail locations.
The stock tends to follow the housing market but thus far worries over a slowdown in housing has not really hit shares of LOW. Instead investors continue to buy LOW and build on its trend of higher lows. Now shares are poised to breakout to new all-time highs.
The previous high was set in September at $49.17. I am suggesting a trigger to open bullish positions at $49.50. More conservative traders may want to wait for LOW to actually close above the $50.00 level since $50 could be round-number, psychological resistance. If we are trigger at $49.50 our target is $54.00 but we will plan to exit prior to LOW's earnings in mid November.
NOTE: LOW is due to trade ex-dividend on October 21st. The quarterly dividend should be 18 cents.
FYI: The Point & Figure chart for LOW is bullish with a $57.50 target.
Trigger @ 49.50
Suggested Position: buy LOW stock @ (trigger)
- (or for more adventurous traders, try this option) -
Buy the NOV $50 call (LOW1316K50) current ask $0.63