SIA Chartsā Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing. After spending most of 2023 in the green zone of the SIA S&P 100 Index Report, Apple (AAPL) slid down the rankings over the first four months of this year, eventually falling all the way down into the red zone. Over the last six weeks, however, its relative strength has improved significantly with the shares snapping out of a downtrend in the rankings and sits within striking distance of the Favored Green zone. Yesterday, Apple finished in 31st place, up 15 spots on the day and up 34 positions in the last month. In the last month, AAPL is up 13.1% compared with a 4.5% gain for the S&P 100 Index. Candlestick Chart Stages a Major Breakout. For over five years, Apple (AAPL) shares have been under accumulation, steadily advancing in a step pattern of rallies followed by consolidation at higher levels. In early 2023, AAPL broke out of a $125.00 to $180.00 range, then settled into a $165.00 to $195.00 range. Coming off a successful retest of channel support, Apple regained its 10-week average last month and has not looked back since. This week, the shares have staged a big breakout, blasting through the top of the channel and the $200.00 round number to signal the start of a new advance. Measured moves from the recent trading level suggest potential upside resistance may appear at the $225.00 to $235.00 range. Initial support appears near the $200.00 round number, then the 10-week average near $185.00.
Point and Figure Chart Completes a Rare Bullish Pattern. Apple (AAPL) shares have staged a classic breakout pattern over the last few weeks. From August through May, Apple trended sideways in a range between $165.00 and $195.00 consolidating previous gains. Last month, the shares broke down through the bottom of this range by one row in what looks like a shakeout, then reversed sharply upward, a textbook Bear Trap pattern.
Since then, Apple has been under renewed accumulation, steadily climbing without even a 3-box reversal along the way. This week, the shares have broken out to a new all-time high, completing a bullish Spread Quadruple Top pattern, signaling the start of a new upleg within a long-term uptrend. Horizontal counts suggest potential resistance near $223.30 or $237.00, followed by $266.90 which is based on a vertical count. Initial support appears near $190.60 based on a 3-box reversal.
With a bullish SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 7 out of 10, AAPL is exhibiting short-term strength against the asset classes.
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