Apple
Apple is reasonably-priced fundamentally with a p/e ratio of 29.69% and a dividend yield of 0.54%, according to Macrotrends. The company beat earnings-per-share estimates in the last three quarters after missing in the quarter ended in February 2023.
The Daily Chart for Apple
Daily Chart for Apple
Courtesy of Refinitiv XENITH
Shares of Apple traded as low as $124.17 as 2023 began on January 3. The 2023 bull market this stock ended at $198.23 on July 19, which was a gain of 59.6%. The correction to the recent low of $165.67 set on October 26 was 16.4%.
The upside gained momentum on February 23 on a golden cross formation. A golden cross occurs when the 50-day simple moving average rises above the 200-day simple moving average. These are in blue and green respectively.
The gap lower on August 4 was a reaction to the earnings beat reported on August 3. The decline was due to conservative comments by the company. The upper horizontal line at $182.57 is the quarterly pivot. The partial horizontal line just below this line was the after-the-close high of $181.83.
The October 26 low of $165.67 was below the 200-day simple moving average in green.
The lower horizontal line at $145.86 is the annual pivot which was a magnet as the stock bottomed January 27 and March 2, 2023.
The Weekly Chart for Apple
Weekly Chart for Apple
Courtesy of Refinitiv XENITH
The weekly chart for Apple is positive with the stock above its five-week modified moving average at $176.06. It is well above its 200-week simple moving average or ‘reversion to the mean’ at $139.50. The 12x3x3 weekly slow stochastic reading is rising at 28.30. 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 $171.71. Reduce holdings on strength to its quarterly pivot at $182.57.
