Swing Trade Idea (LOW) – March 2, 2021
Our bullish trade for Tuesday, March 2nd is Lowe’s Companies Inc (LOW). LOW is part of the Discretionary Sector (XLY). XLY has experienced a 0.6% decline in the last month as price has pulled back to an area of support.
LOW has recently pulled back to an area of support at $160 and bounced higher with strong momentum providing a good risk/reward for a long entry. With a technical score of 4 (out of 10), LOW is a weak stock that will likely move higher.
As a stop loss, if LOW were to trade below $157 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $6.20.
