Don't Ignore This Chart!

Which Way Is The Market Heading? Ask Apple

 | 

Apple (AAPL) is the most influential stock considering all its branches and its psychological effect, not to mention its $510 billion market cap.  But all is not well technically for AAPL and we're going to soon find out if it can hold support and resume its uptrend or if it potentially has much more downside to go.  Why?  Because the 93.00 level has been excellent support for the past few years.  In September 2012, AAPL had an intraday high of 93.11.  It took nearly two years for AAPL to climb back up to test that 93.00 resistance before finally breaking through.  Since its breakout, we've seen tests of 93.00 support in September and October of 2014, then again during the August flash crash in 2015 and one more time in January/February of this year as the overall market found a significant bottom.  But with the S&P 500 well off its February low, AAPL has been performing miserably on a relative basis and now is on the cusp of a very serious technical price breakdown at 93.00.  Here's the latest visual on AAPL:


The good news is that price support hasn't been lost.  The bad news, however, is that while price support has been holding, relative strength (vs. the S&P 500) has been spiraling downward.  A loss of price support sets AAPL up for much deeper selling and likely underperformance by the technology area in general.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
Subscribe to Don't Ignore This Chart! to be notified whenever a new post is added to this blog!
comments powered by Disqus