Stock of the day: Apple
07 August 2024
I would like to share an analysis on Apple's current trading situation, which has been quite technical lately. Recently, a Head & Shoulders pattern, marked in orange, triggered the start of a correction. The price dropped but found its first key horizontal support at $199, marked in yellow. As long as the price remains above this level, the sentiment stays positive. In fact, we've observed a bounce off this support level.
With a positive sentiment on indices, there are strong indications that this support will hold, potentially sparking a new bullish upswing. However, we must also consider the bearish scenario, which would come into play if the price closes below the yellow support. While the likelihood of this scenario is low at the moment, it remains a possibility. Should this happen, the target would shift to the green horizontal support.
In summary, as long as the price stays above the yellow support area, the sentiment remains positive. The current technical setup suggests we have the necessary conditions to initiate a new bullish wave.