From Bruce Kamish’s “A Triangle Formation on Apple Is Approaching an Upside Breakout” posted Tuesday by The Street.
In this daily Japanese candlestick chart of AAPL, below, we can see some positive clues. Prices have been in a sideways consolidation pattern since February. Higher lows can be seen in March and May while lower highs are visible in February and April. Right now we could be witnessing an upside breakout over the April highs.
AAPL is trading above the flat 50-day moving average line and the flat 200-day moving average line.
The On-Balance-Volume (OBV) line has been soft since February so we are waiting and watching for renewed strength. The Moving Average Convergence Divergence (MACD) oscillator has just crossed above the zero line for a new outright buy signal.
In this daily Point and Figure chart of AAPL, below, we can see a potential upside price target in the $159 area. A trade at $138.00 should refresh the uptrend.
In this weekly Point and Figure chart of AAPL, below, we can see a price target of $172.
My take: Technical analysis works until it doesn’t.
There’s a backgrounder on point and finger charts here.