{"id":57762,"date":"2021-09-17T00:56:55","date_gmt":"2021-09-17T07:56:55","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=57762"},"modified":"2021-09-17T00:56:59","modified_gmt":"2021-09-17T07:56:59","slug":"apple-a-stock-perched-on-a-line-dividing-rally-from-churn","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/09\/17\/apple-a-stock-perched-on-a-line-dividing-rally-from-churn\/","title":{"rendered":"Apple: A Stock Perched On A Line Dividing Rally From Churn"},"content":{"rendered":"\n

Apple Dividing Rally from Churn<\/strong><\/h2>\n\n\n\n

The latest cycle of the Apple Trading Model<\/a> (ATM) happened between a legal setback for Apple and a product launch event<\/a>. The week began somewhat hopeful with a small gain. Sellers ended the prospects for the Apple trade by fading the product announcement with a 1.0% loss and a close right on top of support at the 50-day moving average (DMA) (the red line below). Sellers twice more tried to close out AAPL with a 50DMA breakdown. However each day buyers stepped in to prevent triggering a bearish signal. Accordingly, this stalemate leaves AAPL perched on a line dividing a recharged rally from a return to churn. The strong trading volume accompanying this trading seems to confirm high stakes. A breakdown from current levels puts AAPL at risk for an eventual retest of 200DMA support.<\/p>\n\n\n\n

\"Apple<\/a>
Apple<\/a> (AAPL) has spent the last three trading days hugging its 50DMA with consecutive rebounds off intraday lows.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

The AAPL chart includes additional features of importance. <\/p>\n\n\n\n

  • Sellers completely reversed AAPL’s last breakout.<\/li>
  • The line defining the breakout above the January peak supported a loose trading range from July to August.<\/li>
  • A confirmed 50DMA breakdown could quickly test support from the previous breakout.<\/li>
  • A further breakdown puts AAPL at risk of retesting 200DMA support.<\/li><\/ul>\n\n\n\n

    As a reminder, I only activate the Apple Trading Model when the stock trades above its 50DMA. The current marginal closes above the 50DMA are insufficient. In fact, I am content to wait for AAPL to close above its 20DMA before reactivating the Apple Trading Model. Trading above the 20DMA should confirm a recharged rally.<\/p>\n\n\n\n