Charting 3 Weak Stocks in the Dow Right Now

Jun 3, 2015: 10:05 AM CST

Yesterday I charted two strong financial Dow Jones stocks for you – Goldman Sachs and JP Morgan.

Today, let’s switch gears and highlight three weak – and getting weaker – stocks in downtrends for comparison.

Three of the weakest (most dowtrending) names include one large retailer and two oil/energy companies.

Let’s start with the weak retailer – Wal-Mart (WMT):

First, let’s take a look at prior recent mentions about Wal-Mart on the blog during the downtrend:

May 19 Strongest and Weakest Stock Scan (surprise – Wal-Mart was among the weakest)

May 7:  Wal-Mart at Critical Support Planning (after supporting, it broke sharply lower to the target)

Price peaked into $91.00 per share on negative divergences ahead of a reversal and breakdown through 2015.

After three tiny support shelves (blue lines), Wal-Mart continued its downtrend each time.

At the moment, shares are pivoting off the $74.00 level for another possible support shelf pivot.

Note the increase in red volume bars (sell volume) which is a sign of ongoing distribution of shares.

One of my core principles is that “What is Weak, Tends to Get Weaker” and these candidates remind us that trends in motion have greater odds of continuing.

The same logic applies to downtrending Exxon-Mobil (XOM):

Exxon-Mobile and Chevron Corp (CVX) are in similar downtrends for similar reasons – Oil prices collapsed at the end of 2014 and only recently is recovering from its sharp collapse.

Both stocks peaked in July 2014 ahead of the stellar downtrend which developed and extended into 2015.

XOM sees a possible stabilization of its downtrend as the resistance and support trendlines overlap the $89.00 and $83.00 areas.

At the moment, shares trade near the Midpoint of the channel near $85.50.

Chevron Corp (CVX):

Unlike Exxon-Mobil (XOM), Chevron (CVX) currently trades into the lower support trendline near $102.

We can see the four times buyers have intervened at this level, boosting the price up to the falling upper trendline which is near $111.50 currently.

The Midpoint is the $106.00 level which would be a logical target on another upswing away from the lower $102.00 level.

If you prefer bullish, pro-trending strategies, stick with two strong stocks in the Dow – JP Morgan and Goldman Sachs as I mentioned yesterday.

Otherwise, if you’re excited about downtrending stocks, these may be your new candidates to study.

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Corey Rosenbloom, CMT
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3 Responses to “Charting 3 Weak Stocks in the Dow Right Now”

  1. June 8 Dow Jones Strong and Weak Daily Scan | Afraid to Blog Says:

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  2. Four Stocks in the Dow Making Fresh 52 Week Lows | Afraid to Blog Says:

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  3. Wal-Mart Stores, Inc. (WMT): Weak Stock Breaks To New Lows In Downtrend | Stocks, Bonds and Mutual Fund Investing Says:

    […] that, review June 3rd’s “Charting Three Weak Stocks in the Dow Right Now” […]