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Category: Apple (APPL) and Technical Analysis
Date: 13 January 2021 Stock price of Apple (APPL): $131.05 Ever wondered where the support and resistance levels for Apple (APPL) stock is? Is it a good time to buy or is there a dip in its future? We take a look at potential support and resistance levels of Apple Inc (APPL).
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So should APPL stock pull back from its current price, the first support level will be at $130.47, its 10 day moving average, after which its 30 day moving average should be seen as the next support level which is at $127.96"
More About Apple (APPL)
Apple is one of the worlds biggest smart phone and related accessories makers with the group manufacturing the iPhone, iPad, Macbook (laptops for those that don't know), Apple Watch and other related products and services. The group is starting to focus more and more on their services offering such as cloud services for their device users and services such as iTunes.
Apple sales by product type and category for the 2nd quarter of 2020:
Apple sales by product type and category for the 2nd quarter of 2020:
- iPhone $28.962 billon (down -6.7% from $31.051billion for the same quarter of the previous year)
- Mac: $5.351 billion (down -2.9% from $5.513 billion for the same quarter of the previous year)
- iPad: $4.368 billion (down -10.3% from $4.872 billion for the same quarter of the previous year)
- Wearables, Home and Accessories: $6.284 billion (up 22.5% from $5.129 billion for the same quarter of the previous year)
- Services: $13.348 billion (up 16.6% from $11.450 billion for the same quarter of the previous year)
Technical analysis of Apple (APPL)
While there are many different technical analysis indicators we tend to follow the principle of keeping things simple. The KIS principle. So we will take a look at the shorter term moving averages and the longer term moving averages. So let's focus at the longer term moving averages first. The image below shows the stock price of APPL as well as its 50 day and 200 day moving average.
Turning our attention to the moving averages one can see the 50 day moving average is well above the 200 day moving average (which is a positive sign for a company's stock price). If the 50 day moving average crosses below the 200 day moving average it is a negative sign and indicates potential stock declines. From the image above one can see the 50 day moving average is far away from the 200 day moving average.
The 50 day moving average and 200 day moving average also shows medium and long term support levels for a stock price. So should APPL stock decline it will find medium and longer term support at the following prices:
Turning our attention to the moving averages one can see the 50 day moving average is well above the 200 day moving average (which is a positive sign for a company's stock price). If the 50 day moving average crosses below the 200 day moving average it is a negative sign and indicates potential stock declines. From the image above one can see the 50 day moving average is far away from the 200 day moving average.
The 50 day moving average and 200 day moving average also shows medium and long term support levels for a stock price. So should APPL stock decline it will find medium and longer term support at the following prices:
- 50 day moving average: $123.53
- 200 day moving average : $103.33
The image below is similar to the above expect the moving averages are a lot shorter, however they are interpreted in exactly the same way as the longer term moving averages. Right now the 10 day moving average is well above the 30 day moving average, but the 10 day moving average is slowing and starting to turn negative. So let's take a look at the support levels provided by the 10 and 30 day moving average.
So should APPL stock pull back from its current price, the first support level will be at $130.47, its 10 day moving average, after which its 30 day moving average should be seen as the next support level which is at $127.96
- 10 day moving average: $130.54
- 30 day moving average : $127.96
So should APPL stock pull back from its current price, the first support level will be at $130.47, its 10 day moving average, after which its 30 day moving average should be seen as the next support level which is at $127.96
Support and resistance levels for Apple (APPL) stock based on pivot points
Lastly we take a look at the support and resistance levels of Apple (APPL) based on pivot points. Pivot points are calculated by taking the average of the high, low and closing price over a particular period selected (in this case a month)
Below a summary of the resistance levels, pivot point and the different support levels:
So should the stock of Apple hit $140.98 it might struggle to get past that level and if it does its next resistance levels will be at $149.28. However should the stock of Apple (APPL) decline below the pivot value of $130.50 it will most likely find support at $122.20 and if it falls below that the next support line level is at $111.72 and should it fall below that support for Apple (APPL) stock will be found at $103.42
- Resistance 3: $159.76
- Resistance 2: $149.28
- Resistance 1: $140.98
- Pivot Point: $130.50
- Support 1: $122.20
- Support 2: $111.72
- Support 3: $103.42
So should the stock of Apple hit $140.98 it might struggle to get past that level and if it does its next resistance levels will be at $149.28. However should the stock of Apple (APPL) decline below the pivot value of $130.50 it will most likely find support at $122.20 and if it falls below that the next support line level is at $111.72 and should it fall below that support for Apple (APPL) stock will be found at $103.42