Apple

Closing price in previous report: 309.54 Current Price: 364.11 (+17.6%) Observations on the daily chart: In the May 2020 report, Apple looked likely to rally to 350. The stock has continued its incredible rally from the March low of 212 and is currently trading at 364 (+71%). Prices are above the 18 day and 50 day averages which will form the near term support for the stock.

Observations on the momentum oscillator: The momentum indicator has remained flat as prices have risen. This is considered a bearish divergence and could be negative for the stock price in the near term.

Summary: Apple is in a long term uptrend. The stock is trading near its all-time high which makes it difficult to predict a resistance level. A weekly close above 380 looks unlikely. A rally of 71% in prices could lead to profit taking. An initial indication of weakness will be for prices to trade below the 18 day moving average (350). The index is likely to move back into the channel between 310 and 340. Trades should be placed only after a trend is confirmed rather than attempting to preempt a market direction which usually results in being trapped in the wrong side of a trade.

It is possible that the trend may reverse suddenly, strict stop-losses should be maintained.

Important price points:

Resistance levels for the stock: Trading at all-time high

Support Levels for the stock: 350 (-3.8% from current level), 340 (-6.6% from the current level), 310 (-14.8% from current level)