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Apple Inc.'s Technical Playbook Ahead Of Today's Events

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Apple Inc.'s Technical Playbook Ahead Of Today's Events
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Apple Inc. (NASDAQ: AAPL) shares are in the middle of no-man's land ahead of today's “huge” fundamental announcement. Traders are likely to wait to see which way things break to make their moves.

The Technical Take…

As a group, technicians are bullish on Apple stock over a longer time horizon. However, when it comes to maximizing profit and minimizing time wasted by waiting for a stock's price to go one's way, they note that there may be better entry points than today's mid-morning levels.

The three layers of support and resistance for Apple stock are as follows:

Resistance 3: $111.51 (created by the 161.8 percent Fibonacci price projection line shown on the chart)
Resistance 2: $105.53 (created by the 138.2 percent Fibonacci price projection line shown on the chart)
Resistance 1: $102.25 (extrapolated by mapping out a potential “abc” downside correction with $97.10 being where the correction terminates)

Current levels: Approximately $99.09

Support 1: $97.10 (estimated support for possible downside “abc” correction –- creates symmetrical move to 138.2 percent Fibonacci projection -- with February's rally)
Support 2: $93.09 (horizontal line support)
Support 3: Approximately $85 (horizontal line support and major uptrend line support)

The Final Take

There will surely be quite a bit of movement in Apple stock today and in the days to come.

Related Link: Apple Has Been Denied A Retrial In Samsung Patent Case

The best play, though, seems to be to wait for the market to make its move and then to act accordingly based on the price action and the support and resistance levels outlined above.

Technicians would say to look to buy Apple near one of the support levels outlined above with stops in place just below those levels. Or, for longer-term shareholders, look to average into a full position little by little at each of those support levels. 

Disclosure: At the time of this writing, Tim Thielen had no position in the equities mentioned in this report.

Stock chart: 
Stock chart

Posted-In: Technicals Trading Ideas Best of Benzinga

 

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