Lowe's Companies, Inc. : Ready to build a technical rebound
By Josselin Giraud
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$25.55 | $0 | $24.5 | -100% |
From a fundamental viewpoint, the security is cheap with a PER of 14.06x for 2013 and 11.56x for 2014. Even if the sector seems overvalued, the stock offers a good trading opportunity. Besides, EV/Sales is low with a ratio at 0.76x for this year.
Currently the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the USD 25.49 area. This support is a trading opportunity in order to anticipate a technical rebound towards USD 27.85 and by extension towards USD 32.1.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position. In order to benefit from the USD 25.49 support area. A first target price will be the USD 27.85 resistance and a stop loss order will be placed under the mid-term support currently tested.