Published: February 24th, 2026
Lowe's Companies (LOW), a home improvement retailer, will release its earnings report this week, and investors are keen to see direction from the recent price correction.
Last quarter, Lowe's reported sales of $20.81 billion, up 3.2% year over year and in line with analysts' revenue projections. The company had a mixed quarter, with revenue in line with analysts' projections but a respectable beat on gross margin expectations.
In contrast to its steady revenue in the corresponding quarter last year, the market anticipates that Lowe's revenue will increase 9.7% year over year this quarter.
Over the past 30 days, analysts have largely reaffirmed their projections, indicating that they expect the business to continue on its current trajectory as it reports its results.
The excitement around Trump's November victory ignited a rally in major indices, but in 2025, the market has completely reversed course amid possible tariffs. Although some retail businesses in home renovation and furnishings have performed well in this volatile climate, the group as a whole has underperformed.
Let's see the complete outlook from the LOW technical analysis:
On the daily chart of LOW, an extended bullish trend is evident, as the price has been moving higher from left to right for a considerable period. Additionally, the most recent price action shows a, which validates continued momentum.
On the higher timeframe, the price is trading within a volatile structure, with no significant highs or lows over the last year. The monthly chart shows a bullish continuation, with potential to extend buying pressure above the 300.00 psychological level. Meanwhile, the weekly chart shows a bearish reversal at the top, suggesting a potential downside correction.
In terms of volume, buyers remain in favour, as the highest activity level since April 2025 sits at 222.5, which is below the current price. However, the most recent price is trading in the premium zone. This momentum suggests a strong possibility of a downside correction.
On the main chart, the price is trading just below the middle Bollinger Band line after being rejected by the upper Bollinger Band resistance. As the price becomes volatile after breaching the 273.65 swing high, a potential downside correction could occur before forming sustained upward momentum.
The 200-day SMA remains below the current price with a bullish slope. However, the gap between the moving average and the current price signals a potential extended downside correction, as it indicates a divergence.
In the secondary indicator window, the Relative Strength Index (RSI) has failed to hold buying pressure above the 70.00 overbought level and has rebounded to the 50.00 neutral line.
Based on the market outlook, the immediate support level to watch is 262.88, which could be tested in the coming days. As the price is unstable above the existing swing high, the downside correction may extend toward the 200-day SMA.
On the bullish side, the major market momentum remains bullish until the 222.52 high-volume support level is broken. Before taking a long position, investors should look for a price below the 250.00 level, which is the 50% Fibonacci retracement level of the existing swing. In that case, a bullish rebound from the 250.00 to 219.80 area could present a potential buying opportunity, depending on price action. The immediate upside target is the 280.00 level before aiming beyond the 300.00 psychological line.
In the four-hour timeframe, the price is trading bullishly within an ascending channel, with the current structure positioned above the Kumo cloud area. Additionally, the future cloud looks positive for buyers, as both lines are heading upward.
However, the secondary indicator window tells a different story, as the MACD histogram has remained below the neutral line for a considerable time. Moreover, a potential divergence is evident with the signal line, 59a primary sign of a possible top formation.
Based on this market structure, the price is likely to extend a downside correction and find support at the Kumo cloud area. In that scenario, a bullish rebound from the cloud support, confirmed by a four-hour close above a key level, could present a potential long opportunity targeting the 320.00 level.
On the other hand, a failure to hold market momentum above the 287.58 level could extend the downside possibility toward the 219.04 level.
In the hourly timeframe, the intraday price is bearish, even though the overall structure remains in the premium zone. The price is trading within a descending channel, where an hourly close below the high-volume level is visible.
On the other hand, a bearish candle is visible below the weekly VWAP line, accompanied by the Traders Dynamic Index trading below the 50.00 neutral level.
In the main chart, the EMA wave is still acting as crucial support, as the price continues to trade within this zone.
Based on this market structure, downside pressure is expected as the price hovers below the high-volume level, supported by the VWAP line. However, the broader market momentum remains bullish, and a potential channel breakout could present a high-probability long opportunity targeting beyond the 300.00 psychological level.
Based on the overall market structure, LOW is trading within a volatile environment, while the major market trend remains bullish. In this context, further downside pressure could emerge, but a buying opportunity may also appear from the intraday chart.
