Stock of the day: Apple

In today’s stock of the day, let’s analyze Apple, which has been in a consistent downtrend since the end of February. The overall structure on the chart clearly shows a head and shoulders pattern forming, with the price currently finalizing the right shoulder. The crucial element in this setup is the neckline, a key support level marked in blue that has been in place since October 2024.

Yesterday, the price tested this critical support early in the U.S. session, initially breaking below it. However, buyers stepped in, leading to a bullish reversal by the session’s close. This makes today’s trading crucial in determining Apple’s next direction. A daily close above the blue support area would indicate that buyers have successfully defended the level, potentially leading to a recovery. On the other hand, if the price closes significantly below this support, it would confirm the activation of the head and shoulders pattern, signaling a strong bearish move ahead.

Traders should closely monitor today’s session, as it will likely provide a decisive signal. A successful defense of the support could lead to short-term bullish opportunities, while a confirmed breakdown would open the door to further declines.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-apple-18