Welcome to the Extreme Investor Network, where we provide expert insights and analysis on the latest investment trends and opportunities. Today, we’re diving into the world of market heavyweight Apple (AAPL) and its current range-bound position within its primary uptrend.
Apple has recently shown its first MACD ‘sell’ signal on the weekly bar chart since January, indicating a loss of intermediate-term momentum and potentially signaling a corrective period ahead. The weekly stochastics have also turned lower, suggesting a setback for AAPL in the near term.
Our analysis points to initial support for AAPL near $213, with a potential breakdown leading to a focus on long-term secondary support near $198. This level is critical on the chart, supported by the 40-week moving average and the weekly cloud model.
Looking at the bigger picture, the monthly chart reveals long-term overbought conditions for AAPL, presenting a headwind for the stock in the coming months. While the monthly MACD supports the cyclical uptrend, the overbought nature of the stock could lead to a counter-trend move.
As AAPL is the largest component of the S & P 500, comprising nearly 7% of its weighting, a corrective phase for AAPL could weigh on the major indices, particularly during the traditionally weak seasonal period in September and October.
Stay ahead of the game by accessing research from Fairlead Strategies for free on our website. Our team of experts provides in-depth analysis and valuable insights to help you navigate the ever-changing landscape of investing.
At Extreme Investor Network, we prioritize accuracy, timeliness, and actionable advice to help our readers make informed investment decisions. Trust us to provide you with the latest updates and expert opinions in the world of investing.
Disclaimer: The information provided is for informational purposes only and should not be construed as financial, investment, tax, or legal advice. Before making any financial decisions, consult with your own financial or investment advisor. Click here for the full disclaimer.