Lowe’s stock has recently delivered a bullish breakout, surging above a nearly three-year-long resistance level at $262. The stock hit a new all-time high of $286 before retracing back to the former resistance, which now acts as a near-term support zone. As the company gears up for its earnings report tomorrow, here’s a breakdown of what investors should monitor.

Recent Performance and Key Levels

• Breakout and Support:
  After breaking out above the $262 level, Lowe’s stock surged to $286 before pulling back. The resistance-turned-support zone has since been re-tested and held firm, as seen in late October when the stock bounced higher after touching this level.

• Current Price and Resistance:
  Shares are currently trading at $270.84, with resistance emerging near $276.50. Earnings results are expected to play a pivotal role in determining whether the stock can resume its bullish trajectory or pull back further.

• Upside Targets:
  Bullish investors are eyeing the $300 psychological level, but the stock must first clear the $286 all-time high resistance.

• Downside Risks:
  A failure to hold above the $262 support zone could signal weakness, potentially leading to a decline toward the $238-$240 support area, which would place the breakout point back in focus.

Technical Indicators: Mixed Signals

• MACD:
  While the MACD remains on an upward trajectory, recent volatility raises questions about whether it could cross below its signal line, particularly as the stock consolidates post-breakout.

• Stochastic Oscillator:
  The stochastic indicator is rising, which could provide near-term support for the stock and bolster the case for further gains.

Earnings as a Catalyst

Tomorrow’s earnings report will likely be the decisive factor in shaping Lowe’s stock movement as we approach the end of 2024. Strong results could provide the momentum needed to test or surpass the $286 all-time high, paving the way toward $300. Conversely, weaker-than-expected numbers or cautious guidance might trigger a pullback, putting the focus on critical support levels.