Posts Tagged ‘AAPL chart’

The Support Shelf and Trading Range to Watch in AAPL

The Support Shelf and Trading Range to Watch in AAPL

Courtesy of Corey Rosenbloom at Afraid to Trade 

Apple Inc (AAPL) frequently receives a great deal of media attention on their recent iPhone and iPad gadgets.

However, their stock has been stagnating in a trading range between$240 and $270 since May.

There is a critical support area – particularly from the weekly chart – that traders should be keenly aware of, so let’s see these levels and the bigger picture with Apple’s stock.

First, the daily trading range:

As the daily chart shows, Apple has a clear overhead resistance boundary at the $265 per share level, despite the ‘bull trap’ spiking up to $275.  .

Thus, Apple bulls have their alerts set at the $265 level as the upside breakout level to punch through.

The lower boundary actually is rising, as seen in the ascending trendline, which will make more sense as you view the weekly chart.

Volume has trailed lower during the consolidation phase, but given that it’s summer and stocks in general exhibit lower participation/volume during a trading range, this is nothing to be concerned with yet.

Remember that in a trading range, moving averages matter less, so look to the trendlines as more important indicators.

Now,
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The Apple AAPL Arc of August 11

The Apple AAPL Arc of August 11

Courtesy of Corey at Afraid to Trade

I wanted to call your attention to an ‘arc’ formation that is completing in Apple (AAPL) stock at the fresh 2009 highs.  Let’s take a look.

Apple AAPL chart

As price has swung powerfully from July’s $135 lows to August’s (so far) $165 highs, price seems to be taking a pause in a normal/natural retracement ‘topping’ arc formation that has also formed a clean negative momentum divergence.

Notice the numerous dojis (which reflect indecision) as price completes the visible arc, which can be reflective of a gentle transition from buyers to sellers (or of demand giving way to supply).

We’d have to see price break beneath $160 per share to expect a deeper pullback/retracement to test the rising 50 day EMA at $150, so keep your eye on that level to see how price reacts as the downswing/pullback continues.

For now, Apple remains in a convincing rising uptrend structure, though if price were to break beneath the solid 50 day EMA, that would be perhaps a first sign that the trend was weakening, which could bring in additional selling.

Were the arc to complete fully, it would forecast a ‘mirror image’ retracement back to the $135 level which would reflect price support.  Until then, let’s monitor the action for additional clues.

Corey Rosenbloom, CMT

 

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THE ONE CHART THAT SCARES ME

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THE ONE CHART THAT SCARES ME

Courtesy of The Pragmatic Capitalist

Apple has had done a remarkable job during the credit crisis of 2008.  The company navigated one of the most treacherous times in consumer spending with innovative product placement and perfect product pricing.  But the ride hasn’t exactly been smooth for Apple shareholders.  After leading a 5 year parabolic rise in tech the precipitous fall last September sent tech stocks tanking.   Apple has become the leader of all high beta names.  And as we all know by now, beta is where the momentum junkys play.  They can control the near-term price movements of the entire market.

The biggest problem with Apple is that it now represents over 13% of the Nasdaq 100 – arguably a more important index these days than the Nasdaq itself.  What does this mean?  It means Apple’s trading will essentially drag tech and the Nasdaq 100 around by the nose.   In addition, Apple’s recent surge isn’t coming off of an oversold based like we saw back in March.  The most recent price surge is driven almost entirely by speculation and rally chasers as opposed to the bargain hunters we saw in March and April.  This makes Apple shares highly susceptible to quick downside movements as momentum players bail out of high beta names for safer assets.

The recent parabolic rise in Apple shares have not only brought the stock near its all-time highs, but makes for an incredibly overbought and expensive stock at 25 times next years eanrings, 29 times last year earnings and a PEG ratio of 1.65.  Apple currently sits 15% above its 50 day moving average and is up 85% year to date.   Those are uncomfortable numbers for someone like myself who is a firm believer in mean reversion.  Apple’s upward trajectory is simply unsustainable despite what technicians might tell you about “relative strength”.  More importantly though, if Apple were to take a near-term nosedive it’s not unlikely that it would take the entire tech sector with it – and that’s not something this summer rally can afford to happen.

aapl chart

 

 


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ValueWalk

Senate approves $1.9T bill, but changes coronavirus stimulus checks eligibility

By Aman Jain. Originally published at ValueWalk.

Democrats moved one step closer on Saturday to pass the next coronavirus relief package. On Saturday, the Senate approved the massive stimulus package, but with several amendments. One of the amendments was related to the eligibility for the $1,400 coronavirus stimulus checks.

Q4 2020 hedge fund letters, conferences and more

Senate makes three crucial changes to relief package

On Saturday, the Senate made several changes to the relief package legislation. There were, however, three notable c...



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Zero Hedge

CDC Says "Fully Vaccinated" People Can Stop Wearing Masks, Distancing In Private

Courtesy of ZeroHedge View original post here.

Update (1100ET): As federal health officials including Dr. Fauci chide states for easing COVID restrictions, the CDC has just released new guidelines proclaiming that fully vaccinated people can spend time together indoors without masks or social-distancing.

The CDC's highly anticipated report cites early evidence suggesting vaccinated people are less likely to have asymptomatic infections, and are less likely to transmit the virus to other people.

For the record, according to the CDC ...



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Phil's Favorites

Senate Banking Committee Sets GameStop Hearing for Tuesday; Koch Money Pops Up Again

Courtesy of Pam Martens

Andrew Vollmer, Senior Affiliated Scholar, Mercatus Center

We’re starting to see a pattern. When the House Financial Services Committee held its February 18 hearing on the wild, manipulative trading patterns in shares of GameStop, a right-wing front group funded with Koch money sent a surprise witness to testify. The front group was the Cato Institute, which was ...



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Kimble Charting Solutions

China Creates Back To Back Bearish Patterns At 6-Year Resistance!

Courtesy of Chris Kimble

Could China be sending an important message to stocks around the world? Very possible!

This chart looks at the Shangai Index on a monthly basis since the early 2000s.

The index has peaked twice in the past 6-yeas at its 50% Fibonacci retracement level. These peaks took place in 2015 and 2017 and were followed by declines of at least 25%.

The past two months it has tested this 6-year resistance line/50% Fibonacci level, where it created back-to-back monthly bearish reversal patterns.

If the index closes much below risi...



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Chart School

Who is King? The Bond Market or the FED

Courtesy of Read the Ticker

The King Arthur story is battle between a false KING and the true KING. Generally the movie involves surprises, love and violence, and all this coming to the risk on markets very soon. 

The financial blog space expects the FED to do some sort of Yield Curve Control (YCC) to hold interest rates down while inflation moves higher, this is allowing inflation to run hot. The FED wishes to do this over time to deflate the debt away. Very similar to the 1940's post WW2, yields were pegged to 2% and risk on assets went sky high.

However Peter Boockvar suggest the FED may soon learn it is not in control and the true king of the markets is the BOND MARKET. Peter says simply the bond market is telling the FED to bite me!

The FED is not us...

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Biotech/COVID-19

88% Of COVID Deaths Occurred In Countries Where Over Half Of Population Overweight

Courtesy of ZeroHedge View original post here.

A new report by the World Obesity Federation found that 88% of deaths in the first year of the pandemic occurred in countries where over half of the population is classified as overweight - which is defined as having a body mass index (BMI) above 25. Of note, BMI values above 30 - considered obese - are associated with 'particularly severe outcomes,' accor...



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Politics

Why repressive Saudi Arabia remains a US ally

 

Why repressive Saudi Arabia remains a US ally

A demonstrator dressed as Saudi Arabian Crown Prince Mohammed bin Salman with blood on his hands protests outside the Saudi Embassy in Washington, D.C., on Oct. 8, 2018. Jim Watson/AFP via Getty Images

Courtesy of Jeffrey Fields, USC Dornsife College of Letters, Arts and Sciences

Saudi Crown Prince Mohammad bin Salman “approved an operation … to capture or kill Saudi journalist Jamal Khashoggi,” according to a...



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Mapping The Market

Which Governments Ordered Johnson & Johnson's Vaccine?

 

Which Governments Ordered Johnson & Johnson's Vaccine?

Courtesy of Niall McCarthy, Statista

On Wednesday, U.S. regulators announced that Johnson & Johnson's Covid-19 vaccine being developed by its subsidiary Janssen Pharmaceuticals in Belgium is effective at preventing moderate to severe cases of the disease. The jab has been deemed safe with 66 percent efficacy and the FDA is likely to approve it for use in the U.S. within days.

The Ad26.COV2.S vaccine can be stored for up to three months in a refrigerator and requires a single shot, ...



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Digital Currencies

Crypto - It Is Different This Time

 

Crypto – It Is Different This Time

Courtesy of Howard Lindzon

?I have been astonished as you know by the growth of crypto.

I remember back in 2017 when I noticed that Stocktwits message volume on Bitcoin ($BTC.X) surpassed that of $SPY. I knew Bitcoin was here to stay and Bitcoin went on to $19,000 before heading into its bear market.

Today Bitcoin is near $50,000.

Back in November of 2020, something new started to happen on Stocktwits with respect to crypto.

After the close on Friday until the open of the futures on Sunday, all Stocktwits trending tickers turned crypto. The weekend messages on Stocktwits have increased 400 percent.

That has continued each weekend...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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