Swing Trade Idea (LOW) 2-3-2021
Our bullish trade for Thursday, February 4th is Lowe’s Companies Inc (LOW). LOW is part of the Discretionary Sector (XLY). XLY has experienced a 5.9% gain in the last month and its 6M trend has been bullish since November 4th 2020 and its 1M trend turned from bearish to neutral on Feb 1st.
LOW has recently pulled back to its 100 D MA and bounced higher with strong momentum providing a good risk/reward for a long entry. It’s 6M trend has been bullish since Dec 15th 2020 and 1M trend turned bullish yesterday. With a technical score of 7 (out of 10), LOW is a strong stock that will likely move higher.
As a stop loss, if LOW were to trade below $163 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $3.20.
