AAPL - Apple Inc. Mon 27'th Feb 2017
Stock analysis for Mon 27'th Feb 2017 (Updated daily)
Buy candidate since 2017-02-17
Apple Inc. Stock Analysis
Apple Inc. gained 0.20% in the last trading day, rising from USD 136.66 to USD 136.93. , and has now gained 3 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has risen in 8 of the last 10 days days and is up by 3.64% over the past 2 weeks. Volume fell in the last day by -1.49 million shares and ,in total, 20.20 million shares bought and sold for approximately USD 2.77 billion. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.
Apple Inc. has broken the narrow and strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at USD 135.77, a level that may pose a second chance to hit a runner. According to fan-theory USD 138.56 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.
Only positive signals in the chart today. Apple Inc. holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at USD 136.43 and USD 127.03. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday December 30, 2016, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closely.
Relative Strength Index (RSI)
RSI14 is 88 and the stock is extremely overbought on RSI14, but may also ontinue to gain. Some stocks see their best performance while being overbought, but very seldom does RSI remain so high for a long time without short corrections. Risk has therefore increased and larger daily movements can be expected for the next couple of days.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at USD 128.75 and USD 115.82. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 137.11.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Apple Inc. finds support just below today's level at 128.75. If this is broken, then the next support from accumulated volume will be at 115.82 and 115.19. The stock is about to test the resistance at USD 137.11. If this level is broken the stock may move faster and we often see a peak at the end of such a break, posing a good sales opportunity as in 90% of the cases you will get a reaction back to the level broken before new gains. A break should be followed by increasing volume else the break may be false and despite a break of the actual resistance level the stock falls back fairly soon.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved USD 1.16 between high and low, or 0.85%. For the last week, the stock has had a daily average volatility of 0.92%.
The stock is extremely overbought on RSI14 (88). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stoploss: USD 131.82 (-3.73%) ( Criterias: risk and break of trend)
Several short-term signals, along with a general good trend, are positive and the stock has broken the rising trend up which indicates an even stronger rising rate. We conclude that the current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short-term. Due to a possible false trendbreak a pure Buy Recommendation is held back. We have upgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Buy Candidate.