Megacap technology stocks have been a weak spot in the market all year. But now one of the most important members of the club may have sent a key signal.
Apple made a series of lower lows starting in late January, culminating in a bottom near $150 in mid-March. Then notice that prices formed a hammer candlestick and bounced at $153.27 on Monday, followed by another gain on Tuesday. That suggests AAPL has established a higher low – the first step toward potentially resuming its uptrend. It could also be consistent with resolving a bullish flag to the upside.
Second, the March and May bounces occurred at a trend line that began last June. Interestingly, this line closely tracks the 200-day simple moving average (SMA).
Third, stochastics have dipped into an oversold condition. AAPL bounced under similar conditions (for example, late February and early October).
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
Apple made a series of lower lows starting in late January, culminating in a bottom near $150 in mid-March. Then notice that prices formed a hammer candlestick and bounced at $153.27 on Monday, followed by another gain on Tuesday. That suggests AAPL has established a higher low – the first step toward potentially resuming its uptrend. It could also be consistent with resolving a bullish flag to the upside.
Second, the March and May bounces occurred at a trend line that began last June. Interestingly, this line closely tracks the 200-day simple moving average (SMA).
Third, stochastics have dipped into an oversold condition. AAPL bounced under similar conditions (for example, late February and early October).
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
