I'll be honest: I like Lowe's ( LOW) from a fundamental standpoint. But that isn't stopping this $31 billion home improvement stock from showing up on our list of toxic names right now. Of all the names we're looking at, Lowe's is the least worst. By that, I mean that it's merely a "don't buy" rather than a "sell now." Here's why: Lowe's had been looking strong in 2012 -- in fact, shares have climbed up 4.6% since the start of the year. But that all changed back in early May when LOW topped and started moving lower. From a technical standpoint, Lowe's is currently forming a bearish descending triangle pattern, a setup that's formed by a horizontal support level (at $25) and downtrending resistance. >>7 Stocks for a Housing Rebound Essentially, as shares of Lowe's bounce in between those two technical levels, this stock is getting squeezed closer and closer to a breakdown below $25. When that happens, overly eager sellers have knocked down the pocket of buyers that's caused that support level to exist. That's a sell signal for LOW. Momentum, measured by 14-day RSI, may be making higher lows in the short-term, but overall, it's still in downtrend mode. Since momentum is a leading indicator of price, that's extra reason to keep your distance from shares. If you're looking for a buying opportunity, I'd strongly recommend staying away unless shares can start making higher lows. Earnings on August 20 are the next big catalyst to wait for.