(Photo by Smith Collection/Gado)
Apple (AAPL) traded as high as $182.94 on January 4 and then slipped 15.4% to its 2022 low of $154.70 on January 27. It’s above its 50-day simple moving average at $170.32 with its weekly and quarterly risky levels at $183.22 and $184.15.
Its weekly chart is neutral with the stock above its five-week modified moving average but with a declining weekly slow stochastic reading. Apple is reasonably-priced fundamentally with a p/e ratio of 28.20% and a dividend yield of 0.52%, according to Macrotrends.
The company beat earnings-per-share estimates on January 27 after just matching expectations on October 22. This followed nineteen consecutive quarterly earnings which beat analysts’ estimates.
The Daily Chart for Apple
Daily Chart for Apple. Courtesy of Refinitiv Xenith.
Shares of Apple has been above a golden cross more than a year ago. This has the 50-day simple moving average above the 200-day simple moving average. The stock tested its 200-day SMA between May 12, 2021, and June 7 when the average was rising from $122.96 and $124.31 which was a buying opportunity. This tracked the stock to its all-time intraday high of $182.94 set on January 4.
Going into 2022, the stock is below its weekly and quarterly risky levels at $183.22 and $184.15 which are the top two horizontal lines.
The stock is above its 50-day SMA at $170.32 and is well above its 200-day SMA at $148.51. The lower two horizontal lines are the annual and semiannual value levels at $136.22 and $141.26.
The Weekly Chart for Apple
Weekly Chart for Apple. Courtesy of Refinitiv Xenith.
The weekly chart for Apple is neutral with the stock above its five-week modified moving average at $169.21. It is well above its 200-week simple moving average or reversion to the mean at $88.99. The 12x3x3 weekly slow stochastic reading is declining at 66.22. This reading was overbought as 2022 began. 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 $148.52. Reduce holdings on strength to its quarterly risky level at $184.15.
