Stock of the day: Apple

It’s almost impossible to find any instrument on the American Stock Exchange that avoided yesterday’s sharp drop following the hawkish tone from the FOMC. Most major companies, including Apple, printed large black candles on their daily charts, signaling broad market retracements. For some, these movements are simple pullbacks from recent all-time highs, offering potential opportunities for traders looking to enter at lower levels.

Apple, one of the tech giants leading market sentiment, appears to be entering a bearish correction phase. The key support zone to watch lies at the confluence of the long-term black uptrend line and the horizontal support level around $236, marked with orange. This area has proven reliable in the past, serving as a critical zone for buyers to step in and defend the broader bullish sentiment.

A retracement to this support level would present a favorable buying opportunity, especially if a bullish candlestick pattern forms in this area. Patterns such as a hammer, bullish engulfing, or a morning star would reinforce the idea of a reversal and provide a technical basis for long positions. The $236 level not only acts as a psychological barrier but also aligns with the general market anticipation of a year-end Santa rally.

On the other hand, a decisive daily close below the $236 level could indicate further downside potential and negate the bullish setup. However, given the broader market’s tendency to recover after such corrections, the chances of a deeper decline seem limited for now.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-apple-16