In today’s post we try to see when would it be prudent according to our technical analysis to go long in APPLE. Trend remains to be down as prices cannot break out of the intermediate to long term resistance levels. Even the last upward bounce from 421$ to 471$ was short lived as at the first important resistance level, prices were rejected.
Prices continue to trade below the blue downward sloping trend line and under the resistance. APPLE is testing the 419 lows and most probably prices are going to push lower to test 400$. According to the daily chart we remain short with no change in trend yet. A bullish signal on a daily basis will be given above 470$-484$ area.
Taking a closer look at the 60 minute chart above, we point the levels were a price break out should occur for our short-term bullish signal to be given. The resistance levels that need to be broken are 438$ and 449$. An upward break of those levels will give APPLE the momentum to test the first intermediate term resistance at 470$.
More updates on my technical analysis on AAPL can be found also at @alexanderyf. As always, thank you for taking the time to catch up on my thinking.
A chart used in technical analysis that shows support and resistance, and momentum and trend directions for a security or investment. It is designed to provide relevant information at a glance using moving averages (tenkan-sen and kijun-sen) to show bullish and bearish crossover points. The "clouds" (kumo, in Japanese) are formed between spans of the average of the tenkan-sen and kijun-sen plotted six months ahead (senkou span B), and of the midpoint of the 52-week high and low (senkou span B) plotted six months ahead.