Lowe's near Resistance

Published on Tuesday, 03 January 2012 18:44 Written by TradersHuddle Staff

New York, January 3rd (TradersHuddle.com) - Shares of Lowe's Companies, Inc. (NYSE:LOW) are trading very close to calculated resistance at $26.04 with the current price action closing at just $25.52 placing the stock near levels that make it difficult to buy.

Lowe's Companies, Inc.(NYSE:LOW) is the second largest home improvement retailer in the U.S. The Company offers a complete line of products and services for home decorating, maintenance, repair, remodeling, and property maintenance.

Lowe's current stock range is defined by current calculated support defined at $22.39 and by the resistance level at $26.04, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Lowe's, as the stock is well above support, however, as the stock pulls back towards $22.39 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $26.04 then traders will get an opportunity to enter Lowe's stock by establishing a position as the stock moves to a higher range.