Since the beginning of June, Apple (AAPL) has been climbing back up the rankings within the Yellow Neutral Zone of the SIA S&P 100 Index Report. Yesterday it jumped 8 positions to 30th place and is now sitting 4 spots outside of the green zone.
A bullish reverse head and shoulders base appears to be forming in Apple (AAPL) shares, between a head near $130.00 and a neckline near $150.00. Since completing the right shoulder two weeks ago, the shares have continued to climb snapping a downtrend line plus regaining, retesting and launching up off of their 50-day moving average.
A breakout over the $150.00 round number neckline would complete the base and signal the start of a newuptrend. Should that occur, a measured move suggests next potential resistance may appear near $170.00. Initial support appears at the 50-day average near $143.00.
After selling off from April to June, Apple (AAPL) has been showing signs of support lately. Although the shares are still on a bearish Double Bottom signal, they only dropped two rows before reversing to the upside, a bullish Bear Trap. The emergence of a high low suggests that the shares underlying uptrend may still be intact. In order to confirm that accumulation has resumed, the shares need to close above $152.25.
On a breakout, which would complete a bullish double top pattern, next potential resistance would appear near $171.45 based on a horizontal count, followed by the previous peak near $181.95. Initial support appears near $137.90 based on a 3-box reversal, then the recent low near $129.95.
With its SMAX increasing to a bullish 6, AAPL is exhibiting strength against the asset classes.
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