APPLE INC created a new all-time high at $187. The stock managed to reach new heights because of the strong uptrend. AAPL has shown outstanding performance amidst the global economic crisis.
- AAPL closed down 0.59% during Friday’s trading session
- AAPL has been in a strong bullish trend since the beginning of this year
AAPL closed at $184.92 on Friday after creating a new all-time high at $187. The price kept on following a steady trajectory towards the upside while taking the support of a trendline. As the stock kept rising, the bulls didn’t shy away from buying at higher prices indicating the strength of the market.
The Daily chart shows a strong uptrend
The Daily chart shows a steady uptrend as the prices kept making higher highs. The bulls are dominating this market while the price is riding the wave of 9 and 15 EMA. However, it’s important to observe that the volume candle was a big red one. This is an indication that the bulls are trying to book profits.
The RSI is also suggesting that the stock is overbought. It will continue to stay overbought as long as the market keeps buying. However, it is important to observe the daily support trendline as the future of the price could depend on it. The price has a support zone between $183-$176. The price remains in the safe territory above these levels. Although, a break below the trendline can induce sell-pressure and the stock may test lower levels.
The 4H chart shows a minor consolidation
The 4H chart mirrors the daily chart and shows the strong bullish momentum of the market. The key takeaway from here is that the 200 EMA is down by 10.60%. According to the technical analysis, the price will retrace back to 200 EMA in the coming time. This correction is also important to allow new players to enter the market as the existing investors may book some profits.
If we look closely at the indicators, The bulls seem to be losing steam as the price rises. This can be made out by the divergence formed on the RSI and MACD, although it is common to see such divergence in a strong uptrend. The newly formed all-time high will be its resistance. The sky’s the limit when it comes to a break above this resistance and the price can move as long as the market buys. New players must stay cautious as the market is overbought and could correct itself in the coming time.
RSI:
The RSI indicator is currently at 67.31. This represents strong bullish momentum and an overbought market.
MACD:
The MACD indicator is about to make a bearish crossover but it’s above the 0 line which represents a bullish momentum.
200 EMA:
As observed, on the 4hr, the price is trading above the 200 EMA(exponential moving average) which acts as a significant support. This is a clear indication of an uptrend where the buyers are in control and for a trend reversal, the price must break and trade below the 200 EMA.
Technical levels
Support Levels: $183.06 – Support 1
$176.38 – Support 2
Current Price: $84.92
Resistance Levels: $187- Resistance 1
Conclusion:
AAPL is in a strong bullish trend and has created a new all-time high of $187. The stock performed excellent during the first half of this year where it saw a surge of 44%. The market can correct itself as a result of profit booking. At present the price is trading above all the supports and EMA. There is no major sign of a correction or reversal. New players must keep note that the market is in overbought conditions and could be due for a correction. Investors can wait for the price to come to support levels for fresh entry.
