How To Trade 9 Dow Stocks That Set New Highs Last Week
Post on: 9 Июнь, 2015 No Comment
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The Nasdaq Composite set a multiyear intraday high of 4,876.79 on Friday pulling the S&P 500 to a new all-time intraday high of 2,097.03. The Dow Jones Industrial Average remains below its all-time intraday high at 18,103.45 set on Dec. 26.
Within the Dow 30 there are nine components that set multiyear or all-time intraday highs last Thursday or Friday. Their chart patterns are similar to the Dow 30. Here are their year-to-date performances and trading guidelines. These stocks are outperforming the Dow 30, which is up just 1.2% year to date. The daily and weekly charts for the Dow 30 follow these profiles.
Boeing Boeing has a gain of 15.2% year-to- date, which includes a 3% gain month to date. The stock is above its 50-day and 200-day simple moving averages at $134.15 and $129.39, respectively. Boeing’s weekly chart is positive but overbought with its five-week modified moving average at $139.04. The 200-week simple moving average is at $96.95.
Investors looking to buy Boeing should enter a “good ‘til canceled” limit order to buy weakness to a semiannual value level at $139.86. Investors looking to book profits should enter a “good ‘til canceled” limit order to sell strength to a quarterly risky level at $165.16.
Cisco Systems Cisco Systems has a gain of 5.8% year to date after spiking 11.6% month to date. The stock is above its 50-day and 200-day simple moving averages at $27.58 and $25.53, respectively. Cisco’s weekly chart is neutral above its five-week modified moving average at $27.69, but with declining 12x3x3 weekly slow stochastics. The 200-week simple moving average is at $21.07.
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Investors looking to buy Cisco should enter a “good ‘til canceled” limit order to buy weakness to a semiannual value level at $23.72. Investors looking to book profits should consider employing a sell stop given a weekly closed below its five-week MMA at $27.69 and rising each week.
DuPont (DD) ($73.79) has a gain of 3% year -to-date helped by a 7% gain month-to-date. The stock is above its 50-day and 200-day simple moving averages at $73.32 and $69.09, respectively. The weekly chart is positive with its five-week modified moving average at $73.91 and its 200-week simple moving average is at $56.15.
Investors looking to buy DuPont should enter a “good ‘til canceled” limit order to buy weakness to a semiannual value level at $67.05. Investors looking to book profits should enter a “good ‘til canceled” limit order to sell strength to a quarterly risky level at $83.33.