News reports are saying that lines are forming outside major Apple ( AAPL) stores as tech-savvy shoppers line up to score the new iPhone 11 models. Let's see if the charts are discounting anything.
In the daily bar chart of Action Alerts PLUS holding AAPL, below, we can see that prices have been in an uptrend from early January. There was a deep correction/reaction in May but prices have since pushed up to new highs for the move. AAPL is above the rising 50-day moving average line and the now rising 200-day line.
The pattern of volume is not constructive with volume increasing with the price action and the On-Balance-Volume (OBV) line is mostly flat since early June, which does not give us confidence.
The 12-day price momentum study in the lower panel shows momentum weakening slightly from June to August to September. This does not look like a serious bearish divergence but sometimes you never know how prices will react.
In the weekly bar chart of AAPL, below, we can see the past three years of activity. Prices doubled from late 2016 to the middle of 2018 before a deep correction into early 2019. Prices have worked their way back to the prior zenith but chart resistance in the $220-$235 area remains. AAPL is above the rising 40-week moving average line.
The weekly OBV line shows a stronger pattern than the daily chart and implies that buyers of AAPL have been more aggressive. In the lower panel is the 12-week price momentum study, which also shows a slowing of the rally this year.
In this Point and Figure chart of AAPL, below, we can see a potential upside price objective of $247.
Bottom-line strategy: AAPL is pointed up with mixed signals across the two time frames (above). It doesn't pay to fight the trend in AAPL but if you are long or go long you need to risk below $205 at this juncture.
