Apple has received an added amount of attention recently, due to the fact that the stock price had been down for five consecutive days, something that hasn’t happened in quite a long time. This may have something to do with the events transpiring around China’s stock market and economy.
From a technical aspect, this sets up for support in the $119-$118 price area. There is a plethora of confluence in this zone, including the 200 day moving average and prior swing high in December 2014. Also this coincides with the size of the last correction that occurred in late 2014. At that time the stock price went from a high of $118.78 to a low of $103.79, or approximately 15 points. From current highs at $133.98, a 15 point drop would equate to approximately $119.
So here we are, the stock has bounced back nicely today in response to the macro up day in equities. It is still anyone’s guess whether Thursday’s low was the end of the correction. But if one is bullish on the stock and wants to establish a long position, this seems like as good a spot as any to get started.
My upside target should, support continue to hold, comes in at $150. A key date to be aware of is Tuesday July 21st, which is when Apple reports it’s quarterly earnings after the bell. This is likely to be some volatility during and after that announcement.