Walmart Apple Lead These 4 Dow Giants Within 2% Of Buy Points

The year is winding down but Walmart ( WMT ) has a newly formed flat base. Apple ( AAPL ), Microsoft ( MSFT ) and Intel ( INTC ) are also just below buy points briefly breaking out. All four stocks are members of the Dow Jones industrial average as well as the S&P 500 index.

[ibd-display-video id=3037819 width=50 float=left autostart=true] Walmart is 2% below a buy point. Apple, Microsoft and Intel are all 1% off entries.

The week after Christmas tends to be positive for the stock market. But trading volume is usually light, as many investors take the week off. It's hard for stocks to break out in powerful volume - at least 40%-50% above normal - indicating institutional support. So it's possible that Walmart, Apple and other stocks near buy points won't offer classic high-volume moves until 2018.

Walmart

Walmart closed Friday at 98.21, completing a five-week flat base , with a 110.23 buy point. Wal-Mart's overall numbers aren't great, but U.S. same-store sales have turned higher while online sales are booming and starting to move the needle. Investors believe that Wal-Mart has a solid future in the Amazon.com ( AMZN )-dominated e-commerce future, and perhaps give Amazon a real challenge.

Apple

Apple just cleared a 176.34 flat-base buy point on Dec. 18, but volume was only slightly above normal. Shares dropped below the entry the next session and finished last week at 175.03.

Microsoft

Microsoft jumped past an 86.30 flat-base entry on Dec. 15. Volume was heavy, but that was distorted by a triple-witching day that inflated trading activity overall. Shares dipped the next three sessions, ending Friday at 85.58.

Microsoft is shifting from stagnant PC-based Windows and Office sales toward cloud-computing services. It's gaining some market share, especially in certain key niches, though Amazon Web Services remains the clear No. 1.

Intel

Intel shot up nearly 10% over four sessions, culminating in Wednesday's breakout past a 47.40 entry from a cup base without a handle.

Volume was heavy on the breakout and throughout the four-day win streak. But cup bases are more likely to fail without a handle, especially when a stock runs straight up from the bottom of the base like Intel did. Such stocks are prone to retreat - they are due for a pullback and weak holders bail.

Intel did fall back below the entry on Thursday and fell intraday Friday before closing flat at 46.76.

Intel is relying on growth in data centers, so is indirectly benefiting from the cloud computing boom. It also is a notable player in autonomous driving systems via its Mobileye acquisition. Intel also has some chips in the Apple iPhone.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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