At the open on Wednesday, Apple Stock (NASDAQ:AAPL) led the market higher, rising by around 0.7% in the direction of the channel’s median line.
Market Analysis of Apple Stock
The tech titan has been trading in descending channel patterns on the daily chart, producing lower lows and lower highs between two parallel trendlines. The pattern is negative in the near term but might become positive afterward.
The “trend is your friend” (until it isn’t), and the stock will likely continue falling. Aggressive traders may elect to go short at the higher trendline and exit at the lower trendline.
Bullish traders should look for a break up from the upper declining trendline on strong volume to enter. When a stock breaks out of a declining channel, a strong reversal indicates that a rally is imminent.
The Apple Stock Chart Analysis
On August 16, the Cupertino, California-based corporation entered a downtrend inside a falling channel pattern. Although Apple stock (NASDAQ:AAPL) has been making a steady run of lower highs and lower lows, Tuesday’s day’s low might be a higher bottom, which would contradict the present downtrend.
On the daily chart, Apple printed an inside bar pattern on Wednesday, with all price activity occurring inside Tuesday’s trading range. In this situation, the pattern is neutral because, although Apple’s general trend is down, the fact that it did not create a lower bottom on Tuesday is positive.
Traders and investors should keep an eye out for Apple to break up or down from Tuesday’s mother bar on higher-than-average volume to determine future direction. If the stock rises over Tuesday’s high, it may encounter resistance at the channel pattern’s upper falling trendline.
Suppose Apple breaks down from the inner bar. In that case, optimistic traders may look for a bullish reversal candlestick, such as a Doji or hammer candlestick, around the channel’s lower trendline for a probable entry.
Apple’s resistance levels are $139.96 and $143.51, while its support levels are $137.33 and $132.93.
Featured Image – Megapixl © Streetka2004
Author Okoro Chinedu 