Four Stocks in the Dow Making Fresh 52 Week Lows

Jul 1, 2015: 11:06 AM CST

“What gets weak tends to get weaker; what gets strong tends to get stronger.”

Which four stocks in the US Dow Jones Industrial Average are “really weak” right now, so weak that they are downtrending and pushing to brand new 52-week lows?

Let’s highlight four companies that are swimming against the broader market’s tide (and may continue to do so).

In alphabetical order, we’ll start with Chevron CVX:

Before we study these stocks today, be sure to view my prior post from June 3rd entitled:

“Charting Three Weak Stocks in the Dow Jones Index”

What was weak then – and even before then – is STILL weak today.  In the earlier post, I highlighted Chevron (CVX), Wal-Mart (WMT), and Exxon-Mobil (XOM).

Today, I’m highlighting… Chevron (CVX), Wal-Mart (WMT), and Exxon-Mobil (XOM) along with a new ‘weak’ addition of Coca-Cola (KO).

The purpose of this scan is to determine weak stocks likely to get even weaker which means our strategies should favor bearish tactics, NOT bullish reversal strategies (which are tempting).

Nevertheless, Chevron broke support above the $100 level and extended the downtrend, collapsing toward the current $96.00 level.

It’s striking to note that Chevron – a Dow Jones component – has traded 11 weeks consecutively to the downside.

That which is weak tends to get weaker.

Keep this logic in mind when viewing a similar Energy/Oil company Exxon-Mobil (XOM) later.

Next up alphabetically is Coca-Cola (KO):

This might be a surprising addition to the “Weak Getting Weaker” list but nevertheless, Coke (KO) is downtrending (down from the $45.00 peak in 2014) toward the current focal point of $39.00 per share.

A further breakdown under $39.00 suggests additional weakness and bearish movement down toward $37.00 or lower.

For now, focus on the critical pivot support – and 52-week low level – near $39.00 per share.

Wal-Mart (WMT) extends its weakness from $90.00 to $70.00:

Wal-Mart (WMT) showed a “Rocket Arc” price pattern which is similar to what I highlighted in an ETF post earlier in the week.

Rocket Arc patterns start with a blast-off higher (late 2014) that ends with a peak ahead of a “fall back to earth” or reversal swing lower that is similar to the rally.

Wal-Mart demonstrates this pattern in 2015 with a stellar rise… and even stronger reversal.

Wal-Mart is now trading at price levels not seen since early 2013… and could trade even lower if sellers push price under the $70.00 per share level.

Finally, we have Exxon-Mobil (XOM):

Like Wal-Mart and the other examples in the “Rocket Arc” post, Exxon-Mobil similarly blasted off through 2014 and then returned to earth in 2014.

The downtrend continues and has taken price to new lows not seen since 2012.

Again, be sure to reference my early June post “Three Weak Stocks Getting Weaker” to highlight where XOM was at the start of June… and of course where it is at the beginning of July (even weaker).

Resist the urge to fight trends and “call bottoms” in weak stocks – there’s a reason money is flowing out of these names and it’s often best to trade in the direction of money flow – trend – as opposed to fighting it.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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3 Comments

3 Responses to “Four Stocks in the Dow Making Fresh 52 Week Lows”

  1. Rollins Says:

    I mostly don’t prefer to trade too much on Stocks, but still I love to keep close look into this as there are a lot of relation to this with Currency pairs. I also keep close eyes on it with help of OctaFX broker using their sensational news and analysis facility, it’s provided on daily basis, so following that has given me incredible control over how I work which has resulted brilliantly and it’s all thanks to their service which is absolutely free as well!

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

    […] Also, take a look at a July 1st stock scan post where Wal-Mart was identified then as a “Weak Stock Getting Weaker.” […]

  3. Nathan Says:

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    factor which is forever present, I prefer to do Forex trading but I don’t mean
    the risk is completely off here yet, it’s easier to manage. Now back the lows,
    I believe these are routine and I expect it to continue. I always like longer
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