We have often written that Apple (AAPL) is one of the most closely watched companies and its shares are also intensely watched by fundamental and technical analysts. There isn’t a data point or company announcement that isn’t watched by a million eyes. Is there any room for a unique view point?
Let’s check the charts.
In this daily bar chart of AAPL, below, we can see that prices are trying to stage a reversal pattern. AAPL made a low in the middle of June and a higher low in late June. Prices made a high in late June and a higher high in early July.
The daily On-Balance-Volume (OBV) line bottomed in May-June and has moved higher into July telling us that traders have shifted to be more aggressive buyers of AAPL shares.
The Moving Average Convergence Divergence (MACD) oscillator made a higher low in June when prices made a lower low – this is a bullish divergence and now the oscillator is close to crossing the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of AAPL, below, we can see an improving technical picture. Prices made a bottom reversal pattern in June but this reversal looks like it turned the trend from down to sideways. Prices are trading below the declining 40-week moving average line.
The weekly OBV line shows a shallow decline from February and some basing in June. The MACD oscillator has been narrowing in recent weeks and edges towards a cover shorts buy signal.
In this daily Point and Figure chart of AAPL, below, we can see a potential upside price target in the $171 area.
In this weekly Point and Figure chart of AAPL, below, we can see a potential downside price target in the $89 area. A trade at $150 should improve this picture.
Bottom line strategy: A weekly trade at $150 should improve the weekly Point and Figure chart of AAPL (above). A rally to around $170 could unfold and that would go a long way in lifting the broad market averages.
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