The constant tune on investors' AirPods when eyeing Apple ( AAPL
) has got to be the Police's "Every Breath You Take."
Every move Apple makes, every step it takes, every word it speaks is followed and parsed so closely. And, yet, the stock, which is among the Action Alerts PLUS
seems to act with some consistency, even during tough market times.
So, let's now look at every step on the chart of the company.
For a closer look at the chart, click here.
Last week saw the stock dip below the now-rising 200-day moving average a couple of sessions, but this week the buyers were stepping up to add shares. Yet, resistance -- which could stop the stock's rise -- is still in place.
Monday's strong move was capped by the upper Bollinger Band indicator, often a place where strong moves stall out. From last Thursday through Monday Apple, rose about 8%, a very strong move for only three sessions. But, last week's move lower has now printed a higher low on the chart, which is a positive for the bulls. But that peak from Monday, call it $155 or so, has been strong resistance, since the start of February (flat line on the price chart).
The indicators are improving and are giving some bullish clues. The Relative Strength Index (which can be seen in the middle pane) has a rising slope and higher-lows in place. The negative volume index, which is an odd indicator is flashing a buy signal similar to early January when Apple went on a strong run higher. This negative volume index rises when there is an increase in price on low volume.
But low volume is bearish you say, right?
Actually, in this case and most cases, the big money wants to "sneak" in and buy shares when nobody is watching -- even Sting -- to get better prices. That means it's under the radar, so this indicator captures the movements of the big money. It works well with Apple, because many big institutions are in this name. Moving Average Convergence Divergence (MACD) oscillator is about to cross over for a bullish signal as well (as you can see in pane two). We have Apple rated as a "Three," which is holding pattern, waiting for the next catalyst to make our next move/purchase.
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