With the market uptrend under pressure, investors should be cautious when it comes to buying new stocks. This week, your stocks to watch are four notable Dow Jones industrial average components: Apple (AAPL), Microsoft (MSFT), Wal-Mart (WMT) and Home Depot (HD).
XAutoplay: On | OffAll are consolidating near their 50-day lines, and while they are not currently actionable, they could soon form the right side of potential bases. But they’ll need to clear the 50-day first.
Apple is finding a home above the 140 level, and has been trading more or less sideways since breaching the 50-day line on the June 9 tech selloff. Apple close Friday about 8% below an entry at 156.75. Apple rose 0.6% to 145.06 on the stock market today.
IBD’S TAKE: For a look at top growth stocks at or near potential buy points, make sure to check out Leaderboard. Apple is not currently on the Leaders List, but several other big tech names are.
Fellow tech giant Microsoft has been hitting resistance at the 50-day line over the past few sessions. Microsoft rallied Friday to cross that key level intraday once again, but settled just below that support at 69.46, 5% below its high of 72.89. Microsoft rose 0.75% to 69.98 Monday, once again edging above the 50-day line.
Microsoft has formed a flat base — 5 weeks on a weekly chart — with a potential buy point of 72.99.
Big-box discounter Wal-Mart gapped below its 50-day line on June 16, when e-commerce giant Amazon.com (AMZN) announced plans to buy Whole Foods (WFM). Ever since, the stock has been holding above the 75 level. That coincides with a prior buy point from a long consolidation. But the two times that Wal-Mart neared the 50-day moving average, shares hit resistance. Wal-Mart closed Friday at 75.33.
Wal-Mart fell 2.8% to 73.23, undercutting the bottom of its recent consolidation, as retailers overall sell off on Amazon concerns.
Wal-Mart had formed a flat base with a potential buy point of 80.57.
Amazon shares rose 1.4% as the FANG stock retook its 50-day line Friday. Whole Foods dipped 1 cent to 42, exactly at Amazon’s offer price.
Amazon Prime Day is Tuesday, July 11, but the event actually starts at 9 p.m. ET. Wal-Mart is not planning any special offers to try to attract Prime Day shoppers.
Home improvement retailer Home Depot is working on a flat base with a 160.96 buy point. Shares are currently trading 5% below the entry. The 50-day line is proving to be somewhat of a resistance level for this Dow stock, too.
Home Depot dipped 0.7% to 151.16.