Apple shares technical analysis

<p>As shown on the daily chart of AAPL, the price has been rising within a clear bullish leg for the past three weeks after turning […]</p>

As shown on the daily chart of AAPL, the price has been rising within a clear bullish leg for the past three weeks after turning back to the upside from major support around 385. This support level was last hit in April, when AAPL made a 16-month low right at 385 before bouncing. Since then, the price retested that low three weeks ago in late June when it dipped back down to 388 before making its most recent recovery.

While the price has essentially been entrenched within a trading range consolidation for the past five months, the overall trend since the September 2012 highs around 705 has been markedly bearish. May’s high around 465 was a 38.2% retracement of the last major bearish run between the December 2012 high around 595 down to the noted April 385 low. If the price is able to stay below that strong 465 resistance area, AAPL could see a further downside trend continuation, which would be contingent upon a breakdown below the key 385 support level. In that event, key bearish support targets on this potential trend continuation reside around 355 and then 310.

While the price has essentially been entrenched within a trading range consolidation for the past five months, the overall trend since the September 2012 highs around 705 has been markedly bearish. May’s high around 465 was a 38.2% retracement of the last major bearish run between the December 2012 high around 595 down to the noted April 385 low. If the price is able to stay below that strong 465 resistance area, AAPL could see a further downside trend continuation, which would be contingent upon a breakdown below the key 385 support level. In that event, key bearish support targets on this potential trend continuation reside around 355 and then 310.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.