Chart talk: Apple enters an 'area of interest'

From Bret Kenwell's "Can Amazon and Apple Continue to Lead Stocks Higher?" posted Friday by The Street:

Apple shares have traded higher in six straight weeks and in seven of the past eight weeks. The chart (below) shows how fast and furious the move has been.

apple chart thestreet interest

Click to enlarge. 

Now that Apple stock is coming into an area of interest on the charts, I am curious to see how it handles the current zone. The 78.6% retracement comes into play near $171.50, while downtrend resistance is just above this measure (blue line).

If Apple can push through this area, the move could be very impressive, unlocking a potential push into the $177.50 to $180 zone. Any move to or above $180 has been tough for Apple stock to maintain traction, and I suspect the same in this scenario.

On the downside, the 10-day moving average has been active support. That will be the expectation when Apple shares do finally pull back.

My take: Is this how the algos think?

9 Comments

  1. David Emery said:
    There is -zero- in that analysis about the business… For Technical ANALysts, it doesn’t matter if Apple is making money or losing money. The only thing they’re interested in is predicting short term patterns on the stock price (as a model of how other algorithms and speculators react to the price.)

    3
    August 13, 2022
  2. Daniel Epstein said:
    My problem with charts and Apple specifically is the lack of consideration of the buyback decreasing slowly the number of shares. This should change what the values on the charts mean a little and over time this could add up to a divergence of expected movement. 180 this year is not the same as 180 last year and even less so two years ago if there are fewer of the company shares available. Of course buyers and sellers of the stock often don’t realize or calculate that effect very well either.

    4
    August 13, 2022
  3. Miguel Ancira said:
    I prefer to look at what they have done instead of how the stock has performed……iPhone, Services, Wearables, Mac, Privacy, R&D, Acquisitions….. isn’t this telling us a lot?

    1
    August 13, 2022
  4. Gregg Thurman said:
    I remember reading not to long ago, that the market’s recovery would U shaped. AAPL’s chart is most assuredly V shaped. That would imply a return to $180+ In thenext two weeks.

    My problem with this is that when AAPL printed $180+ last January, it’s RSI was well north of 70 (over bought). Then it crashed. Currently AAPL’s RSI is well north of 70, strongly suggesting a pullback in the near term.

    But that’s technical analysis for you. It’s accurate until it isn’t.

    2
    August 13, 2022
  5. Steven Philips said:
    I keep seeing headlines (presumably from technical analysts) that say Apple is “nearing” a “buy point”!!! What???

    0
    August 13, 2022
  6. Michael Goldfeder said:
    The only “Buy Point” of interest to me are the revenues generated when consumers either make a direct purchase inside an Apple Store, or point and click on their web site. That’s the only “technical” analysis that I’m current following as opposed to these “chartists.”

    0
    August 13, 2022
  7. Rodney Avilla said:
    Technicals, as we all know, are an attempt to analyze what traders (not investors) will be doing short term. It is not an analysis of, nor a tool for, investors (particularly long term investors). Having said that, I do find them entertaining, but not useful since I’m not a trader. I assume as more trader follow them, they become self fulfilling, and thus ‘more accurate’.

    1
    August 13, 2022

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