Tuesday, February 19, 2013

Some interesting Dow 30 charts

A daily review of the 30 individual stock components which comprise the Dow Jones Industrial Average (DJIA) is a useful exercise for getting an overall “feel” for the broad market’s internal condition.  My latest review of the Dow 30 components yielded some intriguing finds.

Among the short-term technical chart patterns which show the most promising, from a momentum perspective, are American Express Co. (AXP).  AXP appears to have chart strength and potential short-term upside potential, along with being above its rising 15-day and 30-day moving averages.  I’d consider using the 30-day MA as a stop loss on a closing basis on long positions. 

AT&T (T) is much closer to its latest quarterly high than its nearest pivotal low, which is always a key factor in evaluating forward momentum.  A probe above the nearby high of 35.60 is possible before this latest run is through.  A caveat is in order here, however.  T is a notable laggard in the broad market rally, however, and doesn’t enjoy as much intermediate-term momentum as some of the other Dow 30 components.  Neither is it as fundamentally strong as the other stocks mentioned here.  The 30-day MA looks like a good rolling stop loss guide.

Cisco Systems (CSCO) is in a technical position to feed off additional strength in the NASDAQ.  It wouldn’t take much energy to propel CSCO to a new quarterly high above the nearby 21.30 level.  CSCO isn’t one of my favorites right now, though.  I’d exit the stock on an intraday move below 20.40.

General Electric (GE) is a momentum leader at present, having just recently made a fresh new high and encountering little in the way of overhead resistance.  I’d watch for potential resistance between the $25-$27 area and use the 30-day MA as a rolling stop loss guide. 

Proctor & Gamble (PG) is one of the current momentum leaders among Dow 30 stocks.  A probe of the nearest round number 78.00 level is likely, and a move to the nearest psychological resistance at 80.00 is possible before this latest rally has met its terminus.  For PG I’d consider using a stop loss roughly mid-way between the intersection of the 15-day and 30-day moving averages on an intraday basis.

Disclaimer: The foregoing overview is intended for merely instructive purposes and should not be construed as formal investment advice.  Do your own due diligence before entering into any trading or investment position.

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