Apple Could Be Squeezing Toward a Rally

Apple has been a frustrating stock for most of the year, but now it may be squeezing toward another rally.

The first pattern on today’s chart is its super-tight Bollinger bandwidth, which yesterday was the narrowest since December 2019. That could suggest price is overdue for a move.

But which way will it go? MACD just turned positive (the second pattern), which could indicate the move will be higher.

Third, AAPL has held its 200-day simple moving average ( SMA ). Notice the false breakdown below that line on Thursday, which was followed by something of a kicker candlestick pattern.

Next is the declining trend line starting on May 7. A confirmed move above that line, with the 200-day SMA pushing up from below, may leave the bears with few options and draw buyers from the sidelines.

This price action comes as AAPL unveils new operating systems and privacy features at its developer conference (WWDC). While the announcements don’t seem to have an immediate financial impact , they could be bullish simply because the event has passed. Investors waiting to enter may have less reason to delay, and the longer-term uptrend (albeit slow and painful) can potentially resume.

TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.