Apple is one of those stocks that we should look at almost every day.
The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq Composite. If Apple does well, it will be good for the stock market.
On the other hand, if Apple does not do well, it will not be that good for the stock market.
Apple recently broke a daily downtrend line and this is a positive development for the stock. The stochastics were showing a slight bullish divergence which was why Apple had a nice bullish engulfing pattern.
The last time the stock broke a downtrend line, it had a nice rally back up. Perhaps due to the extremely oversold situation, it rallied hard.
This time, the rally is less convincing and seems to be taking a lot of effort.
Apple is still trading above its rising 200 MA and at least this is something positive for the stock.
When we look at the 60 min chart of Apple, we can see that it has already started a new 60 min uptrend. Currently it is trading above its rising 20 MA and 50 MA which in the past it was trading below it.
I would like to see Apple trade back above the resistance line. If the breakout materializes, it will be good for Apple as well as the entire stock market.
The recent quarterly earnings result by Apple has not been received well by investors. Even before the announcement, AAPL has been selling off thanks to rumors of weak Iphone X sales. Is this a temporary setback and will Apple continue to move higher?
The chart above is the daily chart of AAPL.
As you can see, the sell off started when Apple formed a topping tail. The topping tail plus the negative news was all that is needed to bring Apple lower.
As this moment, Apple is declining to an area of price support. Hopefully, it can find support at this area. Apple has not fallen below its rising 200 MA for a very long time. It will be crucial for Apple to be able to stay above this important MA.
The chart above is the weekly chart of AAPL.
The health of Apple is also crucial to the health of the stock market as it is a component of the 3 main indexes. Therefore, it will be important for Apple to be able to find support at the areas marked.
The trend of Apple is still up in the weekly chart although it is beginning to weaken a bit. Apple is dropping below the weekly rising 20 MA. That is usually nothing much to be concerned about especially if there is support nearby. But we really do not want to see it break support and break below the weekly 50 MA.
The last time it broke below the 50 MA, it had a meaningful correction and the stock was not able to make a new highs for a very long time.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
Oct 30, 18 06:35 AM
As we close out the month of October 2018, what is in store for us? Let us take a look at the charts and see what they might be telling us.
Oct 26, 18 10:47 AM
Technical analysis of US stock market for Friday October 26 2018.
Oct 26, 18 06:23 AM
With the recent crash and sell off one wonders how far Dow Jones can fall. Let us take a look at what the chart is telling us on the possibility of Dow's collapse.
Aug 16, 18 07:28 AM
In this lesson, we will learn how and why BMY manage to bottom out and start a new uptrend.
Aug 14, 18 08:19 AM
In this lesson we will learn and examine why Pentamaster was able to recover all of its losses to start a new uptrend and achieve new highs.