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Technical Analysis Of AAPL : Making Sense Of Apple's Stock Price 

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.

November 24 2021

AAPL made an all time high recently. What a move!

Will AAPL continue to move higher into the future?

Well, a topping tail appeared in the stock two days ago. This might give some scare to many people because they know that a topping tail can be an early sign of a reversal and more selling to come.

However, you need to know the whole context of a chart to be able to fully interpret the message that is given by a candle. The appearance of a topping tail candle in a new high is very common. But AAPL's move up was not parabolic because it just broke out of a base. So the topping tail has less of an effect compared to one that appears in a parabolic move.

I think many people were expecting a pullback after such a nice move up. So by the end of that trading day, the stock was selling off. This formed the topping tail. 

However, the next day, the stock formed a bottoming tail. This tells us something. First is the warning sign of the topping tail might not be working that well. Secondly the bulls are not giving up that easily.

If you look at the chart above, you will realize that AAPL has a previous high support at the 157 area. I have highlighted it in a darker green. A previous high can act as support and as long as AAPL stays above this support area, then we will continue to see AAPL making new highs in the future.

Even if that support fails, we have a cup with handle support. The support from the handle area is the lighter green area I have highlighted. In the event that AAPL falls to that area, it may bounce back up higher from there.

I first highlighted AAPL's possible bullishness back in October 2021. As the stock moved up, I also highlighted a bullish continuation pattern. The stock had a daily bullish cross as it was forming a daily triangle.

AAPL broke out of the triangle and proceeded to move higher.

What I did not highlight in the last analysis was the fact that AAPL was forming a cup with handle chart pattern. A cup with handle that results in the stock making new highs is very very positive for the stock. It is very possible that AAPL will continue to move up in the future as this cup with handle pattern will be watched by many many top investors and traders.

AAPL has not met the cup with handle target but I believe that if it stays above the first green support area, then it is very likely that it will continue to make new highs in the future.

November 16 2021

Apple has been trading sideways for awhile. It is finding support at the 50 day moving average. I think that as long as AAPL is able to stay above the 50 day moving average, then it is very likely to continue to move higher.

What I can see right now is there might be a possibility that AAPL is making a triangle pattern. A small triangle pattern. If AAPL breaks out higher from the triangle then we could see AAPL moving higher and possibly making new highs.

If AAPL goes up, then it is good for the stock market and this will help to send Nasdaq, the SPX and Dow higher and maybe to another new high.

Of course on the other hand if AAPL trades below the triangle pattern and also trades below the 50 MA, then it could go into a correction.

November 4 2021

Well, AAPL did find support at its previous high support and also the 50 day moving average. Which makes it powerful because finding support at the 50 MA could mean the stock can go higher from there.

What I want to point out to you is there could be a possible cup with handle pattern in the daily chart of AAPL.

It might not be the textbook type as the handle is a bit choppy but the downwards move to form the base of the cup and then the sideways trading to form a handle is unmistakable. Now that we have a handle, a break above the handle would be bullish and this could send AAPL's stock higher.

The target is way of this chart and that I think could be north of $160. Yes, it could go above the previous old highs and set a new all time high.

If on the other hand AAPL breaks below the handle then this signifies weakness and we could have more correction.

If you look carefully AAPL might have a bullish cross soon and this could help to send AAPL higher as well.

October 29 2021

Apple's earnings disappointed investors which is why it will be gapping down.

When a stock gaps down we want to see the support area. It is gapping down to a possible support area at 147. That will be the first green area. If support holds, then we could see a bounce higher.

There is another layer of stronger support which is around 143 to 144.50. I think if a deeper correction happens, this will be where the support will be. If the support holds then AAPL could bounce higher from there.

If the support holds, the QQQ and the XLK will also not drop that much.

Remember November and December are usually good months for techs. So if the support holds we could see AAPL and the QQQ and XLK going higher from there.

October 15 2021

Yesterday we had a nice rally in the stock market. This is an encouraging sign and AAPL also rallied nicely. Most tech stocks did quite well in yesterday's rally. The day before yesterday, AAPL made a bottoming tail and this is a sign of rejection of going lower.

If you look at the daily chart of AAPL above, you can see that there is nice support very very near to the current price. Sometime ago, the stock broke out of a very large ascending triangle. The top of the pattern which I have highlighted in green is a very strong support area. 

What is even more encouraging is the fact that AAPL's 200 MA is about to meet price. The 200 MA can be a very strong psychological support.

Sometimes a stock may bounce up even before it touches the 200 MA. That is what happened to Apple in March 2021. The stock bounced up without touching the 200 MA. In May and June, AAPL bounced up after touching the 200 MA.

Perhaps this time, it will bounce up higher without touching the 200 MA. Sometimes the fact that a stock is very near the rising 200 MA may cause people to be bullish and short sellers to cover their shorts.

As you probably know, AAPL is a very big component of the 3 major indexes of the US stock market. So, with heavy support below, this could be a sign for the stock market to bottom. 

AAPL has closed back above the daily 20 MA which is a good sign. It may also be forming a small ascending triangle pattern. It has already broken above a downtrend line which you can see in the chart above.

If AAPL breaks out of the ascending triangle pattern, then this will reinforce the fact that the stock market is bottoming. If it is good for Apple, it it will be good for the stock market. On the other hand, if AAPL breaks below the lower uptrend line of the small ascending triangle pattern, then it could drop further to the 200 MA.

This will also affect the market a bit but maybe by not much since there is heavy support at the green area. The green area is also probably where AAPL might meet the 200 MA if it corrects more. But so far, it looks like there is a high probability that AAPL might breakout of the small ascending triangle.

October 6 2021

AAPL has failed to make a double bottom which I mentioned in my last analysis. A bearish cross has appear and this does not help the bull case at the moment unless a major support area is reach.

A possible major support is the green area which I have painted on the chart above. There is price congestion on the left which will act as price support and this is also probably where Apple will meet its rising daily 200 MA which can be a psychological area of support. The area will be around $134 to $136.

A measured move target which I have drawn in blue goes slightly below the area but I think it will be quite near. If Apple does fall to the 200 MA we could start to look for a possible reversal. That is of course if the 60 min chart agrees with us.

The 60 min chart of AAPL shows that it is still in a downtrend. With the 60 min 20 MA below the 60 min 50 MA and price is still below these 2 moving averages which makes it still bearish. 

Apple tried to break above the downtrend line yesterday but fails to do so. One sign of bullish reversal is to break above the downtrend line but failure to do so shows that the 60 min downtrend is still intact.

Until a valid reversal shows itself in AAPL I would advise caution on this stock for the bulls. But for long term investors in AAPL, you might want to consider buying the stock for long term investment purposes when it drops to the green area or when it hits the 200 MA.

September 29 2021

Its been quite a while since I commented on AAPL. Since then Apple has gone up by quite a lot bringing the S&P and Nasdaq up along with it.

After the recent sell off the stock is now trying to make a double bottom. It is still in the process and we do not know whether it will work or not. Hanging above it is the 20 MA and 50 MA which may form a bearish cross and this might not be good for the stock.

If the double bottom fails then the stock could go lower. We can take a measured move of the last sell off and project it downwards. This is slightly below the rising 200 MA. Which is quite near it.

If AAPL falls and nears the rising 200 MA then we can again consider there to be a possible buying opportunity.

The 2 hour chart above shows the double bottom clearer. If AAPL could break above the downtrend line, then it is very likely to it will continue to rise. On the other hand if AAPL drops below the first low, then we should be prepared for more sell off. And we should expect the general markets to drop as well.

November 26 2019 Tuesday

AAPL has really gone a long way.

The stock is still in a daily uptrend. The thing with stocks that are in a strong uptrend, is we do not know how high it might go.

Stocks that are in an uptrend tend to surprise us and go even higher.

I think I will just employ a simple trend following tool using the 20 MA. As long as the stock is above the daily 20 MA, we should continue to be bullish on this stock from a daily chart point of view.

Sure we won't catch the exact top but at least it gives us a reference point.

If we take a look at the 60 min chart above, we can see that the stock has gone back above the 60 min 20 MA and 50 MA. I am not sure whether a double top might form in the 60 min chart.

But what you might want to have a look at is the green 60 min box area.

That will be a short term support area.

If AAPL manages to stay above this green area then it is likely to continue to move higher and make new all time highs.

November 14 2019 Thursday

November 12 2019 Tuesday

March 22 2019 Friday

March 21 2019 Thursday

Apple has broken out of a box and this will be good for the stock and for the market.

As long as Apple stays above the box, it will still be bullish. Just look like the daily 200 MA did not even give much resistance to it. The 60 min 20 MA and 50 MA is still rising. Therefore we should continue to be bullish on AAPL.

March 20 2019 Wednesday

Yesterday, AAPL drop below the 60 min 20 MA for the first time after a long time. This is a first sign of weakness.

It does not mean that the stock will drop but just tells us that the bullish momentum is slowing down and one should be careful.

However if AAPL drops below the low that I have drawn in the chart above, I guess more selling might happen.

It did not reach the 190 target that I set which is where it is likely to meet its 200 day moving average but I guess targets are just there to help us.

March 19 2019 Tuesday

The 60 min trend for AAPL is still up and we should continue to be bullish on this stock.

I do not recommend to long this stock now for swing trading because it is very near the daily 200 MA. The risk reward will have gotten smaller by now.

We should still be bullish but do be careful when it starts to drop below the 60 min 20 MA and 60 min 50 MA.

March 18 2019 Monday

March 15 2019 Friday

Well, Apple has been rising and rising and rising.

The simple reason is because its daily trend is up. Plus its 60 min trend is up. Therefore, let's just be simple and follow the trend.

A few days ago I mentioned that we should continue to be bullish on AAPL as long as it stays above the 60 min 20 MA. Two days later and the stock has continue to rise.

A simple trend following method does indeed yield results.

I think as long as the stock stays above is rising 60 min 20 MA, we can expect the stock to continue to rise up to the daily 200 MA.

The chart above is the daily chart of AAPL.

Notice how it is in a daily uptrend. It broke out of a trading box and is now climbing higher. The next stop will most likely be the 200 MA psychological resistance.

I'm not sure whether it will reach there but in my opinion, as long as the stock stays above the rising 60 min 20 MA, it is possible that AAPL will touch the 200 MA.

March 13 2019 Wednesday

March 12 2019 Tuesday

March 5 2019 Tuesday

It's been quite a long time since I have had a look at Apple on this website. Maybe I should look at it every week as this stock is such an important component in most major stock indexes.

I think it is also in the portfolio of most investors as well as institutional investors. Therefore, what happens to Apple will have an impact to the bottom line of many people's portfolio.

I believe Apple is one of the most followed stocks in the world if not the most followed stock. Everyone knows Apple and their products is a symbol of wealth and prestige. Holding an Iphone 7 Max now is a symbol of being cool.

Apple has gone through quite a lot since last year. It started with a bearish cross and then a drop below a daily box. That is when it started to collapse.

From $200 plus to around $150 is about a quarter loss.

Apple started to bottom around January 2019 and lately it had a bullish cross. Now it is consolidating sideways and is in the process of forming a box.

A box in charts is very useful to gauge the strength or weakness of a stock. A strong stock will break above many many boxes to move higher.

Therefore, if Apple can breakout of the current box, it will move higher. Because Apple is a component of many indices it will also help the performance of major indexes such as the S&P 500, Dow Jones and Nasdaq Composite Index.

As long as Apple stays above the lows of this current box it is my believe that the main indices will not experience any significant selling.

On the other hand, it Apple drops below the current box, then you can certainly expect a serious correction in the main indices. So do take this into consideration.

Boxes are very simple stuff but they can be very powerful stuff.

I guess you do not read this in most places but trust me they are simple and works wonderfully well in analyzing stocks and the market.

The above chart is the weekly chart of AAPL. We can see how the stock got oversold in the weekly stochastics which also gave a buy signal.

AAPL also broke above a steep downtrend line. It break above a downtrend line...nevermind whether it is steep or not. A stock that breaks above a downtrend line is telling us it wants to end the current downtrend and therefore we should start to analyze whether it is giving us signs that it wants to go up.

Of course the weekly 200 MA also gave it some psychological support.

Right now Apple has moved from oversold to overbought in the weekly chart. Therefore we can expect some slowing down in the bullish momentum. Overbought is just overbought. It can warn us of declines but if the current consolidation in the daily chart of Apple can hold, then Apple will ignore the overbought signal.

And if Apple can breakout of the current daily box, then the overbought signal will lose its effect.

There is some resistance area above in the weekly. I have highlighted them in red. Therefore, even if Apple breaks out it will go up and then move back down in a wave pattern. The rise will help absorb the sellers at the area. And any dips are buying opportunities for traders and investors.

Let's take a look at the 60 min chart of Apple.

Well, we can see a few break downtrend lines in the 60 min chart. Those can be trading setups and they also signal to us short term moves.

Recently it broke above another downtrend line. It shot up yesterday only to decline back to the top of the trend line. I believe it's still alright as long as it stays above the downtrend line and the rising 60 min 50 MA.

But do be careful if it drops below the line I have drawn. More selling is bound to happen if AAPL drops below the lows of this recent support area.

Hope you enjoy and find this analysis helpful.

Have a great trading day!

April 13 2018 Friday

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.

February 2 2018

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

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