Technical Analysis – LOW
As I’ve discussed in my previous two posts I’ve purchased 25 shares of Lowes (LOW). The first post I discussed the reason I bought LOWES. The second post I discussed the moat and management. Today’s post I’m going to discuss my entry point using the three tools that Rule #1 taught us.
Looking at the chart below I’ve plotted the stock, simple moving averages, MACD and Slow Stochastic. We can see that around January 14th the Slow Stochastic was trending up. Then January 16th, the 10-day moving average and the MACD crossed up. This shows that people were starting to move more money into the stock. That’s three indicators trending upwards. I waited for an extra day and on January 17th you can see the 30 day moving average crossed through the price. I purchased the stock January 18th at $22.30.
Now I’m watching the three tools to see when they tell me to sell. It really is as easy as Phil Town says after finishing the initial analysis. Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! It’s true I just check the stock and read any information that is currently available.
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Thursday, January 24th, 2008 at 6:50 am under