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Swing Trade Idea (LOW) – March 14, 2022

Market Outlook: Equities continued to show signs of consolidation with a bearish bias as the major indices failed to stay above key support areas last week. Bearish price action on Friday indicates that the major indices are heading towards their next support levels (SPY: $404, QQQ: $316). Geo-politics remains they key theme in dictating short-term price action and with the conflict between Russia and Ukraine showing no signs of slowing down, we expect volatility to remain elevated and continued rotation out of growth and into value/safe haven assets. 

LOW Bearish Idea: Our bearish trade idea for today is LOW. LOW is part of the Homebuilders sub-industry which has turned bearish in recent weeks. From a fundamental perspective, LOW remains on the backfoot as the reopening shifts consumer spending away from home improvement. Price action is also bearish with LOW’s 21 D EMA getting reject on Friday and lack of momentum indicates continued decline to the $210 level in the short term. Both 1M and 6M trends are bearish.