Home » Dow Jones index has seen a pullback from the intraday lows of 31,88 (+0.08%)
Dow Jones attempts to recover on Monday
CVX, MRK and LNG perform well to support the index.
Technically, the index may remain capped by the 50-SMA (4-hour chart).
Dow Jones Daily Update 16-05-2022
The Dow Jones index has seen a pullback from the intraday lows of 31,88. However, the index seems to be playing in a tight range.
Meanwhile, certain conditions are also limiting this hope as Tech stocks (Twitter (TWTR), Apple (AAPL), and Microsoft (MSFT) are on a continuous decline along with some other key industries except the Energy sector.
Few Stocks proved as a star for the index. The DJIA leaders Chevron (CVX) and Merck (MRK), along with Cheniere Energy (LNG), Eli Lilly (LLY), Exxon Mobil (XOM) and Northrop Grumman (NOC), were among the top stars to watch on Monday
Cheniere Energy is one of the best stocks to observe as an investor. Shares moved up 2.7% Friday after trading below their 50-day SMA. The share moved up by 1.1% Monday
IBD Leaderboard Stock Eli Lilly is just above a prior cup base 284 buy point and is trying to lie on the 50-day SMA. The LLY RSI line hit a new high last week. The stock was up by 1% Monday Morning
Energy giant Exxon – The stock found the required and long-awaited support at its key 50-day line. As a result, XOM shares inched higher Monday.
Drug leader Merck traded above 89.58 buy points after the share dropped 0.5% last Friday. Merck embraced a gain of almost 1% in the first half of Monday.
Twitter Stock fell down further than 4% after Elon Musk took a turnback from the Twitter deal and the violation of the nondisclosure contract. Unfortunately, the conflict remained in the news because of many fake accounts.
Tesla traded less than 1% Monday Morning. The reason could be linked with the Twitter deal. Both are separate SBUs but have been led by Elon Musk.
The 4-hour chart of the Dow Jones index shows a positive scenario. The bulls climbed above the 20-period SMA, heading towards the 50-period SMA. However, the volume bars are not strong enough. This could be a corrective upside within a broad downtrend.