Last updated on April 16th, 2023 at 12:37 pm
In this blog post, we will look at Apple stock (AAPL) on a weekly stock price chart. We will be using technical analysis to find out when it might be a good time to buy or sell the stock.
The first step in technical analysis is to identify the trend. Upon examining the weekly chart of AAPL, we observe that the stock had been fluctuating between the range of $130 and $175 since 2022. However, since the start of 2023, the stock is on a steady upward trend.
Support and Resistance Levels
Next, we can identify the key support and resistance levels on the weekly chart. The support level is the price level where buying pressure is expected to emerge, while the resistance level is the price level where selling pressure is expected to emerge.
The weekly chart suggests the presence of three significant supports. The initial support could be located at the 50-week moving average of $149. In the event of this support being breached, a more robust support seems to exist at a price of approximately $131. In terms of resistance, the stock appears to be trading within the resistance zone of about $165, indicating a potential downward movement in the stock’s value.
Technical Indicators
Technical indicators can also be used to identify potential entry and exit points. In this analysis, we will be using the moving average convergence divergence (MACD), relative strength index (RSI) and stochastics.
- MACD, a reliable metric to gauge trends and stock momentum, signals a bullish trend as the violet line is above the orange line for weeks. However, with the stock trading near the resistance level, it’s not an optimal time to buy. So, I would wait for the price to cool down before entering.
- RSI is another effective tool to determine if a stock is overbought or oversold. When the RSI crosses above 30, it indicates a buy signal and when it crosses below 70, a sell signal. The RSI is currently moving upwards and it is around 62 indicating the price may move up a bit more. But, it’s wise to wait as the stock has already been trading high for a while..
- Stochastics, another technical indicator, can help investors forecast whether the stock will continue in its current direction or undergo a trend reversal. When the black line crosses over the red line, it means a bullish sign and vice versa. The black line intersecting with the red line at the upper end of the band indicates a trend reversal could be on the way. With its value at 97 and the stock trading upwards for a long time, a trend reversal may be imminent. Hence, this indicator does not show a buy sign.
Should I buy AAPL stock now?
Based on the analysis of the weekly chart of Apple stock, we can see that the stock is at an overbought zone, but the buyers seem to be still getting in. Additionally, the technical analysis shows that the price is overbought now and the price may trend downwards in the near future. Swing traders could think of starting to make exit strategies at this price range.
For medium to long term investors, the stock is not a buy right now. Based on the technicals, A price of around $131 could be good.
As with all investments, it is important to conduct your own research and analysis before making any trading decisions.
