Has apple (AAPL) – Get report Was it a frustrating long position or what? Despite its slow price action, there is a silver lining.
Corrections tend to develop in two ways: through price or time.
If it’s the former, the stock generally undergoes a brutal correction, undoing a large chunk of the gains relatively quickly. If it is the latter, the correction usually takes much longer, but is much less painful.
While these “corrections over time” can be frustrating because they take so long, investors do not have to endure the emotional trauma that comes with a painful price correction.
Will that change Apple’s WWDC event? Follow the live updates here.
The company’s Spring Loaded event was not enough to boost stocks. These are two incredible earnings reports they weren’t enough either.
In that sense, your WWDC event may not change things either. But after hitting a 52-week high nearly a year ago, it’s only a matter of time before we get a solid move in stocks.
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As in recent quarters, Apple’s stock isn’t giving investors much to work with despite its upcoming event.
Stocks are slightly lower on the day, but continue to build on the recent pattern. That is, stay above the 200-day moving average and the uptrend support.
As it stands, Apple is building a massive ascending triangle pattern. That is a bullish formation where uptrend support continues to guide the stock towards a static level of resistance. In this case, resistance comes into play between $ 135 and $ 138.
However, over time, the 200-day moving average seems to lose importance for the bulls. The risk is a post-event selloff that takes Apple below the 200-day support and uptrend.
With the May low just below current levels at $ 122.25, a monthly downward rotation could be possible.
There are other moving averages nearby on the larger time frames, such as the 50-week and 10-month time frames, but if stocks experience further selling pressure, perhaps the first quarter low of $ 116.21 is in play.
On the bright side, I want Apple to erase the 50-day moving average. If you can do that, $ 130 or more is doable, opening the door to that stubborn resistance area between $ 135 and $ 138, as well as the May high near $ 134.
If by chance we get a move through $ 138, highs near $ 145 are up for grabs.
The bottom line: Keep an eye out for the 50-day moving average to the upside and $ 122.25 to the downside.