Apple put in a secondary low at the end of June with the help of a long-term 50% retracement and since then it has been powering its way up. It is on its way to test the bottom of the Ichimoku cloud and a successful penetration of this thick area of resistance would place this iconic stock back on a pedestal.
The immediate focus is on the nearby area at 472, which is the neckline of a double bottom formation; the target of this bullish formation, should it break soon, is the 552 area. The resistance of this neckline is doubled by the 55-week exponential moving average.
The bottom of the cloud rests at 490; incidentally, the current top of the cloud is 562.
The 21-week exponential moving average provides key support at 446. Only a close below this up-turning line would see Apple retesting the 50% retracement of the March 2009-September 2012 at 394. However, the new Apple products expected to be introduced in September should be so attractive that this exponential moving average should not give way.
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