Lowe’s Companies Inc. (LOW) recently gapped down on earnings, breaking through a daily uptrend line and challenging its previous uptrend.
GAP REVIEW
On Nov 20, 2013, LOW gapped down taking out the $48.50 daily pivot. The stock immediately sold off and pressed down into 47.
KEY LEVEL
LOW has a key level of overhead supply now after the gap down on earnings. Overhead supply level is into $48.50. Key demand exists at $43.50. These levels give us a guide of risk to setup a nice swing trade.
THE TRADE
Any bounce back up into overhead supply at the $48.50 area is a nice entry for a swing short. The stop would be over the $49.50 and the target would be in the $43.50 area.
Disclosure: my Swing Newsletter Subscribers have been short since 11/22/2013.
