Apple Inc. (AAPL), which beat quarterly earnings estimates when it reported results after the closing bell on April 30. The stock has held its quarterly pivot at $272.81 the 22nd of April, setting the stage for a positive reaction to the result. The potential upside is monthly risky level at $337.57.
The iconic manufacturer of the iphone is a component of the Dow Jones Industrial average and beat earnings per share estimates for the 16th consecutive quarter. The stock is not cheap, as its P/E ratio is high to 23.82 with a low dividend yield of 1.01%, according to the trends.
Apple stock closed last week at$ 310.13, up 5.6% year to date, and in the bull market territory at 45.9% above its March 23rd low of $212.61. The stock is 5.4% below its intraday high of $327.85 game on Jan. 29.
The daily chart for Apple
Refinitiv XENITH
The daily chart for Apple shows that the stock has been above a cross of gold since May 9, 2019, when the 50-day simple moving average rose above the 200-day simple moving average to indicate that higher prices will follow. The stock then traded below its 200-day simple moving average between 10 May and 7 June as a buying opportunity. This signal followed the stock to its intraday high of $327.85 game on Jan. 29.
The stock gapped below its 50-day simple moving average at $305.74 on Feb. 24 and tested its semi-annual value level at $262.02 on Feb. 28. After a solid rebound, Apple stock has failed to hold $262.02 on 13 March. The annual value of the level of $253.68 also failed to hold on the 17th of March. The 200-day simple moving average failed to $248.61 the 20 March and 23 March low was $212.61.
The rebound captured the 200-day simple moving average at $251.36 and the annual pivot at $253.68 on 6 April. The semi-pivot at $262.02 was vaulted, the 8 April and the quarterly pivot at $272.81 has been a magnet between 13 April and 21 April. The stock has jumped above the 50-day simple moving average at $274.93 23 April, setting the stage for the rise of the earnings report, released on 30 April.
The weekly chart for Apple
Refinitiv XENITH
The weekly chart for Apple is positive, with above its five-week modified moving average of $283.25. The stock is well above its 200-week simple moving average, or the return to the average, at $183.60. Notice how the test of this moving average provided buying opportunities.
The 12 x 3 x 3 weekly slow stochastic reading rose to 57.36 last week, an increase of 50.19 on the 1st of May. In the month of January, this reading has been 94.00, well above the 90.00 threshold put the broth in a “swell parabolic bubble” of the training. The bubble has popped in the March 23 low. In January 2019 low, this reading has been below 10.00, indicating that the stock was technically “too cheap to ignore.”
Trading strategy: Buy shares of Apple stock on the weakness of the quarterly, semiannual and annual value levels at $272.81, $262.02, and $253.68, respectively. Sell shares on the strength of the monthly risky level at $337.57.
How to use my value levels and risky levels: The closing price on Dec. 31, 2019, were inputs to my proprietary analytics. Half-yearly and annual, the levels are still on the charts. Each calculation uses the past nine closes in these time horizons.
The second quarter of 2020 the level has been established based on the 31 March, close by, and the level of the month of May was established based on the April 30 close. New weekly levels are calculated following the end of each week, and new quarterly levels occur at the end of each quarter. Half-yearly levels are updated in the middle of the year, while the levels remain in play throughout the year.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
Want to learn how to integrate levels of trading in your day trading strategy? Check out my new publication, the 2-Second Operator.
Source: investopedia.com
