BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

Apple, Boeing, Cisco And Verizon Suffering From The 'Death Cross'

Following
This article is more than 8 years old.

The Dow Jones Industrial Average ended last week with a close of 16,643.01, down 6.6% year-to-date after trading as low as 15,370.33 last Monday, August 24. This low was 3.1% below the October 15, 2014 low of 15,855.12. From the all-time intraday high of 18,351.36 set on May 19 to the August 24 low the Dow corrected by 16.2%.

The weekly chart shifted to neutral from negative with the Dow below its five-week modified moving average of 17,282 with its 12x3x3 weekly slow stochastic reading rising to 24.64 up from 24.12 on August 21.

What this means is that the Dow 30 will be extremely volatile between the August 24 low of 15,379.33 and the ‘death cross’ of the 50-day and 200-day simple moving average of 17,531.09 and 17,785.84, respectively.

There are 19 components of the Dow that are under the ‘death cross’ with these four stocks forming their crosses last week. Here are their daily charts.

Courtesy of MetaStock Xenith

Apple closed at $113.29 on Friday down 6.6% month-to-date and down 11.8% since joining the Dow 30 on March 18. Apple is below a ‘death cross’ with the 50-day simple moving average of $120.79 and below its 200-day simple moving average of $121.58.

Courtesy of MetaStock Xenith

The weekly chart is neutral with the stock below its five-week modified moving average of $117.70 with the 12x3x3 weekly slow stochastic reading of 25.24 up from 24.61 on August 21. The August 24 low of $92.00 was above the 200-week simple moving average of $86.75 last tested during the week of June 28, 2013 when the average was $55.22

My annual value level is $90.44 with an annual pivot of $110.43 and a quarterly risky level of $122.43.

Must Read: 3 Winning Vanguard Funds To Buy

Boeing closed at $133.24 on Friday, down 7.6% month-to-date and up 2.5% year-to-date. Boeing is below a ‘death cross’ forming with the 50-day simple moving average of $142.04 below its 200-day simple moving average of $142.17.

Courtesy of MetaStock Xenith

The weekly chart is negative with the stock below its five-week modified moving average of $139.94 with the 12x3x3 weekly slow stochastic reading of 41.64 down from 43.04 on August 21. The August 24 low of 115.14 was above the 200-week simple moving average of $107.68 last tested during the week of October 7, 2011 when the average was $61.91.

My annual value level is $97.21 with a semiannual risky level of $141.81.

Cisco Systems closed at $26.00 on Friday down 8.5% month-to-date and down 6.5% year-to-date. The stock is below a ‘death cross’ forming with the 50-day simple moving average of $27.77 below its 200-day simple moving average of $28.06.

Cisco's weekly chart is negative with the stock below its five-week modified moving average of $27.62 with the 12x3x3 weekly slow stochastic reading of 44.48 down from 45.76 on August 21. The August 24 low of $23.03 was above the 200-week simple moving average of $22.78 last tested during the week of December 20, 2013 when the average was $20.27.

My semiannual value level is $23.64 was tested at the August 24 low with an annual risky level of $27.96.

Verizon (VZ) had a close of $46.07 on Friday down 1.5% month-to-date and down 1.5% year-to-date. The stock is below a ‘death cross’ with the 50-day simple moving average of $46.84 below its 200-day simple moving average of $48.20.

Verizon's weekly chart is neutral with the stock below its five-week modified moving average of $46.80 with the 12x3x3 weekly slow stochastic reading of 29.42 up from 21.99 on August 21.

My quarterly value level is $45.42 was violated at the August 24 low of $38.06 with an annual risky levels of $46.50 and $51.45.