Timing is important if you want to buy apple stock. Here we will take a look at Apple's stock chart using technical analysis to identify potential buy areas.
Apple has been a steady winner over the years. Even if you had bought it at the very high before a correction, the stock would have given you a good return. That is because the stock has been rising over the years. However, it is even better if you can identify areas where you buy at the low. This will significantly improve your returns.
Let us take a look at the stock at its current price as of March 14 2022. The stock is in a nasty correction mode. It has not drop more than 20% yet from its all time high. So we are still not in a bear market in Apple's stock. Thus we can consider this to be a correction at the moment.
There is a support area in the chart which I have highlighted in green. You will notice how the stock seems to bounce up when it reaches this area. Currently the stock is very near to its rising 200 MA.
I must say that Apple is at a very important area right now.
If we zoom out further in the daily chart of Apple, we can see how the stock seem to go up when it drops to the 200 MA or when it is very near to its 200 MA. The previous few times that Apple is at the 200 MA or near the 200 MA has been very good buying times.
So for long term investors, this may be a good time for you to buy some shares of Apple.
For stock traders, I would advise you to buy the stock only if it trades back above its downtrend line. You can see where I draw the downtrend line in the first chart. Unless AAPL goes back above the downtrend line, it can be very dangerous for the trader since you need very good timing to profit from the stock. The stock is also still below its 20 MA (red line) which means for the short term the stock is still not conducive for a swing buy.
But for investors, we are at an area where historically, the stock has been able to reverse back up. Therefore, it is a good idea to start buying some Apple stock.
You can see how Apple is at a previous high support if you look at the weekly chart. The last time that Apple drop to a previous high support, the stock rebounded back up.
Hopefully this analysis will help you make a better decision.
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