Stock of the day: Apple

Apple’s chart currently presents an intriguing technical setup, one that has drawn attention due to its ongoing decline since mid-December. This drop brings the price closer to a critical support zone, a confluence of two significant levels.

The first is the black uptrend line, which has served as a support for the stock during its long-term bullish trend. The second is the orange horizontal support, centered around the $236 mark, a level that has historically acted as a turning point. Together, these two elements form a robust potential reversal zone, labeled with blue highlights on the chart.

This area is pivotal. Any formation of bullish candlestick patterns, such as a hammer or a bullish engulfing, within the blue support zone would signal the possibility of a bounce. This setup would provide a compelling opportunity for buyers to enter the market, with strong risk-to-reward dynamics.

On the flip side, a daily close below both the black uptrend line and the orange horizontal support would invalidate this bullish thesis. Such a move would confirm a significant breakdown, potentially leading to further declines. For sellers, this would represent a clear invitation to go short.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-apple-17