Apple (AAPL) – Get Free Report shares are mixed to start the holiday-shortened week. While the stock is up about 0.5% so far on Tuesday, it was up as much as 1.9%.
Optimism was running high this morning as the company announced its new MacBook Pro with upgraded chips. The company will also refresh its Mac Mini computer and will no longer produce Macs that include an Intel (INTC) – Get Free Report chip.
Coming into Tuesday, Apple stock had rallied in five of the previous six sessions, with the lone down day a loss of just 0.06%.
That said, it has not been all smooth sailing for Apple. The stock on Jan. 3 made new 52-week lows, the first trading day of the new year.
But the stock carved out a solid low between $125 and $127 over a multiday stretch before resolving higher.
After it made a nice push back into the mid-$130s, here’s how the charts are shaping up.
Trading Apple Stock
Weekly chart of Apple stock.
Chart courtesy of TrendSpider.com
Apple is one of the few megacap tech stocks that had avoided getting pummeled in 2022. But the shares began to break down in the latter part of the fourth quarter.
Apple stock declined for seven straight weeks and broke to new 52-week lows. At the low, the shares were down 32% from the all-time high.
Over the past 12 years, Apple stock has suffered several notable corrections. From peak to trough, the losses have weighed in at 35%, 39%, 33.5% and 45.4%.
With that in mind, you can get a sense of where Apple’s current correction fits within this observation.
More recently, the shares bottomed near $124 and recovered the prior 2022 low at $129.04. Apple stock is now running into the $138 pivot level and the declining 10-week moving average, which may act as active resistance.
The setup from here is straightforward.
On the upside, a move over $138 opens the door to the mid-$140s, where Apple stock runs into its 10-month and 21-week moving averages, as well as downtrend resistance. That’s also where the 61.8% retracement comes into play.
Above that puts $150 to $152 in play, where it finds its declining 50-week and 21-month moving averages, as well as the 78.6% retracement.
If active resistance holds here, the prior 2022 low near $129 is in play. That’s followed by the current low near $124, then a potential push down to the $115 to $118 zone.
There, it finds the 50% retracement from its all-time high down to the 2020 low, as well as the all-important 200-week moving average (particularly in Apple’s case).
