Lowe’s Companies (LOW) fell 8% on Wednesday morning after a mixed earnings report. While the company beat on revenue and same store sales, it missed by $0.13 on earnings per share (EPS).

LOW reported adjusted EPS of $0.74 and total revenue of $15.49 billion, compared to the market’s expectations of $0.87 and $15.33 billion. Same store sales increased by 4.1%, compared to estimates of 3.1%.

The stock recovered to -5% after CFO Marshall Croom provide a favorable assessment of the company’s improving margins. Nonetheless, the market continues to weigh.

Our analysis of LOW market cycles on the chart below shows this week as a probable low. We see it likely rebounding over the coming month to $98. This may prove to be a “sell zone” for nimble traders. The market cycles are designated by the black semicircles at the bottom of the chart.

Lowe’s (LOW) Chart with Weekly Bars

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