Apple Has A Positive Weekly Chart, But Post-Earnings Strength Failed Below Its Quarterly Pivot At $182.57. Here’s How To Trade It Now.


traded as high as $181.85 after the close on Thursday, November 2, after beating earnings-per-share estimates. This high was below its quarterly pivot at $182.57. Some earnings categories missed expectations. Friday’s close above its five-week modified moving average kept the weekly chart positive.

Apple is reasonably-priced fundamentally with a p/e ratio of 29.69% and a dividend yield of 0.54%, according to Macrotrends. The company beat earnings-per-share estimates in the last three quarters after missing in the quarter ended in February 2023.

The Daily Chart for Apple

Shares of Apple traded as low as $124.17 as 2023 began on January 3. The 2023 bull market this stock ended at $198.23 on July 19, which was a gain of 59.6%. The correction to the recent low of $165.67 set on October 26 was 16.4%.

The upside gained momentum on February 23 on a golden cross formation. A golden cross occurs when the 50-day simple moving average rises above the 200-day simple moving average. These are in blue and green lines on the chart, respectively.

The gap lower on August 4 was a reaction to the earnings beat reported on August 3. The decline was due to conservative comments by the company. The upper horizontal line at $182.57 is the quarterly pivot. The partial horizontal line just below this line was the after-the-close high of $181.83.

The October 26 low of $165.67 was below the 200-day simple moving average in green.

The lower horizontal line at $145.86 is the annual pivot which was a magnet as the stock bottomed January 27 and March 2, 2023.

The Weekly Chart for Apple

The weekly chart for Apple is positive with the stock above its five-week modified moving average at $176.06. It is well above its 200-week simple moving average or ‘reversion to the mean’ at $139.50. The 12x3x3 weekly slow stochastic reading is rising at 28.30. Stochastics scale between 00.00 and 100.00 with a reading above 80.00 overbought and a reading below 20.00 oversold.

Trading Strategy: Buy Apple on weakness to its 200-day simple moving average at $171.71. Reduce holdings on strength to its quarterly pivot at $182.57.

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