These 5 Dow Stocks Are Below Four Key Moving Averages

This article originally appeared on Forbes on July 6, 2015. Price references pertain to that date.

The Dow Jones Industrial Average ended last week on July 2 with a close of 17,730.11, below its 50-day simple moving average of 18,010.88 and above its 200-day simple moving average of 17,687.25. The Dow is below its five-week modified moving average of 17,938.79 and above its 200-week simple moving average of 15,051.29.

The five stocks below all four key moving averages are Caterpillar (CAT), which is down 7.8% year-to-date, Chevron (CVX), which is down 14.5% year-to-date, IBM (IBM), which is up 2.9% year-to-date, Wal-Mart (WMT), which is down 16.3% year- to-date, and Exxon Mobil (XOM), which is down 10.1% year-to-date. Three of these stocks are among the six “Dogs of the Dow.”

DOW30YTD

Here are the weekly charts for the five Dow stocks below all four moving averages:

CATF

Courtesy of MetaStock Xenith

Caterpillar CAT +1.22% closed at $84.38 last week on July 2 below its 50-day and 200-day simple moving averages of $86.97 and $89.48, respectively. The weekly chart is negative with the stock below its five-week modified moving average of $86.13 and its 200-week simple moving average of $92.18. Its 12x3x3 weekly slow stochastic reading is 71.76 down from 76.68 on June 26.

My semiannual value level is $73.15 with an annual risky level of $99.11.

CVXF

Courtesy of MetaStock Xenith

Chevron CVX +1.06% had a close of $95.87 last week on July 2 below its 50-day and 200-day simple moving averages of $103.73 and $109.06, respectively.

Chevron’s weekly chart is negative but oversold with the stock below its five-week modified moving average of $101.11 and its 200-week simple moving average of $113.35. Its 12x3x3 weekly slow stochastic reading is 12.32 down from 16.42 on June 26 as this “Dog of the Dow” moves deeper into oversold territory below that threshold of 20.00.

My monthly value level is $89.4 with a quarterly risky level of $109.50.

IBMF

Courtesy of MetaStock Xenith

IBM IBM +1.81% closed at $165.09 last week on July 2 below its 50-day and 200-day simple moving averages of $169.64 and $165.83, respectively.

IBM’s weekly chart is negative with the stock below its five-week modified moving average of $166.99 and its 200-week simple moving average of $186.50. Its 12x3x3 weekly slow stochastic reading is 52.02 down from 58.44 on June 26.

This “Dog of the Dow” has monthly and quarterly value levels are $161.07 and $160.68, respectively, with a semiannual risky level of $187.72.

WMTF

Courtesy of MetaStock Xenith

Wal-Mart closed at $71.86 last week on July 2 below its 50-day and 200-day simple moving averages of $75.31 and $80.53, respectively.

Wal-Mart’s weekly chart is negative but oversold with the stock below its five-week modified moving average of $74.26 and its 200-week simple moving average of $72.84. Its 12x3x3 weekly slow stochastic reading is 6.61 up from 5.30 on June 26, which are readings significantly below the oversold threshold of 20.00.

A weekly value level is $70.37 with a quarterly risky level of $78.98.

XOMF

Courtesy of MetaStock Xenith

Exxon Mobil XOM +0.75% closed at $83.14 last week on July 2 below its 50-day and 200-day simple moving averages of $85.83 and $89.58, respectively.

Exxon’s weekly chart is negative with the stock below its five-week modified moving average of $84.90 and its 200-week simple moving average of $89.75. Its 12x3x3 weekly slow stochastic reading is 22.83 down from 25.60 on June 26.

This “Dog of the Dow” has a monthly value level is $77.27, with a quarterly risky level of $92.65.

Disclosure: I have no positions in Caterpillar, Chevron, Wal-Mart, IBM or Exxon Mobil.

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