As earnings seasons gets started, there are a few Dow Jones blue-chip stocks that are nearing buy points after building bullish bases. Apple (AAPL), Boeing (BA), American Express (AXP), Exxon Mobil (XON), and Home Depot (HD) could make strong solid gains in the coming weeks.
Apple Stock: Apple is closing in on buy zone after building a 5 week flat base. A key pattern that reflects unusual company strength. Instead of falling lower, it instead held steady in price, which is telling you that it wants to run higher. That flat base is part of a base-on-base pattern.
The Dow Jones stock is closing in on a buy point of 194.30 to MarketSmith analysis. Another good sign for Apple is its relative strength line which is trending gently upward in recent weeks. The RS line, which tracks a stock against the S&P 500 Index, had pulled from record highs for most of June. Apple’s stock dipped 0.2% to close at 190.91 on the market today.
Boeing Stock: After a 5 week flat base, Boeing stock could finally be ready to take off, with a buy point of 374.58. That’s after a previous breakout failed. A good showing at the Fairbborough Airshow, which is traditionally a prime event for jet orders, could give the company the tailwind they need.
Boeing stock rose 1.5% to finish at 356.10 after it retook its 50-day line on Friday. Its relative strength line is moving higher although it hasn’t made a lot of progress in the last six months. Boeing is preparing to release second quarter results on July 25.
American Express Co: This credit card magnate is closing in on a buy point after building a second-stage flat base over the last 5 weeks. The entry point is 103.34 and American Express Stock has advanced 0.2% to 100.69.
Although their stock has been kind of all over the place in 2018, with its price moving higher, it did find support at its 50-day line on Friday, which is a good sign for the stock. It also has solid but not ideal, fundamentals, which is reflected in its IBD composite rating of 92.
Just last month, the Supreme Court threw out a lawsuit alleging that American Express attempted to stifle competition by barring merchants from encouraging customers to use cards that carry lower merchant fees.
Exxon Mobil Stock: The oil giant Exxon Mobil is trying to reach a buy point of 83.89 after building a 23 week cup-with-handle base. This is a very powerful pattern that can lead to massive gains.
Exxon stock fell 1% to 82.49 on Monday, as there was a sharp fall in crude oil prices. That is the constant risk concerning all energy stocks, as they tend to swing up and down due to ever changing crude oil prices.
Home Depot Stock: The home improvement retail giant Home Depot is very close to buy zone after building a happily symmetrical cup-with-handle base over the past 24 weeks. It is currently aiming for a 201.70 buy point. Home Depot’s stock moved up 0.1% to 198.88 on Monday. This stock has continued to be a consistent winner and has a relative strength line that remains near an all time high. Also they exhibit solid fundamentals all around which is shown in their IBD composite rating of 90.
Home Depots first quarter same-store sales came up short of expectations and management blamed cold and rainy weather as the reason behind the dismal sales. However, the company held to its earnings-per-share guidance and they remain positive regarding their second quarter as the weather has improved.