Lowe's Cos. Inc. had a sharp rise from $44.13 (U.S.) to $76.25 (A-B) and then stayed in a horizontal trading range between $65 and $77 for more than one year (dashed lines). The recent move above the trading range signalled renewed investor interest, the breakout from the trading range and the start of a new up-leg (C). Behaviour indicators including the 40-week moving average (40wMA) and the rising trend-line (solid line) confirm the positive status. Only a decline below $75 would be negative. Point & Figure measurements provide a target of $94. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.