My case for the Dow making another go at 12800

Today, I feature some Dow stocks as a crystal ball of sorts to portend the short-term to medium-term direction of the Dow Jones Industrial Average.

Technically, some of the strongest stocks in the Dow are:

GE:





















A long hammer-like candlestick eventuated from Friday's price action, which ricocheted off the 200-day MA, and could also represent a 38.2% Fibronacci retracement of the recent $33.9 to $36.0 rally.

AIG:




















AIG sees a doji at the major support area of $67, which, together with the potential triangular wedge pattern formed since end-Feb '07, could signal an imminent rebound to at least $70.The stock held above the 200-day MA so the future trend looks to be up.

Home Depot:




















HD's stock shows clear bullish divergences in all three major indicators used, and exhibits a doji Friday to boot. If I had a US trading account, I would buy HD IMMEDIATELY!


INTEL:





















Intel stock shows classic bullish divergence in its RSI, as well aas minor divergences in MACD and Stochastios. My target is at least $19.90 in the next week or so, at or close to the 200-day MA.


Johnson & Johnson:




















JNJ has a similar technical pattern to INTC and the recent high volume seems to indicate the passing of ownership from one set of strong hands to another.

And one stock which looks set to make new 52-week highs is AT&T:
































The tech giants look OK-

Microsoft:























The main gauge of Bill Gate's vast wealth looks to have successfully tested the 200-day MA. Moreover, an ascending triangle formation seems to have materialised in the chart.


On the flip side, some weak Dowdies:

Boeing:




















Technically, BA may be setting itself up for a Lockerbie style drop with high-volume down days and a breach of the 50-day MA. MACD and Stochastics have also crossed down.


Exxon Mobil:

























This oily giant seems to have reached a temporary top, with a bearish-engulfing candlestick pattern.


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