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by Darius Anucauskas

Apple Wedge

From the beginning of this year, the Apple stock (NASDAQ: AAPL) is on a steady uptrend. After reaching a new high for this year, near the 221.35 level, the stock quickly reversed back down. That said, the move lower may be seen as a temporary correction, as the price is still within a rising wedge formation, which could help AAPL to move further up in the near term. Of course, let’s not forget that these patterns, eventually tend to break, and in most scenarios through their lower side. But until that happens, we will remain somewhat positive and aim higher.

There is a chance we could see a move lower, which may bring the stock below the 192.55 hurdle. That hurdle is the low of last week. At the same time, the price would be placed below the 200-day EMA and could send AAPL further down, to test the lower side of the aforementioned wedge formation. If it remains intact, the buyers might quickly pick up on that and lift the stock back above the 192.55 zone, which could attract more buying interest, as it may give hope to new investors. This is when we will target the 203.50 obstacle again, a break of which could push AAPL further north, aiming for the 210.64 barrier, marked by the high of July 29th.

Our oscillators, the RSI and the MACD, are somewhat in support of the idea seeing a bit of correction in the short run. The RSI is below 50 right now and points slightly to the downside. The MACD is below its trigger line and is just fractionally below zero, while pointing slightly to the downside.

On the other hand, a break of the lower side of the wedge formation might spook new investors from entering, especially if the stock slides below the 184.70 hurdle, marked by the low of May 13th. We will then examine a possible move to the 179.81 obstacle, a break of which could clear the path to the 170.25 area, which is the lowest point of June.

Apple daily

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