Market Overview

Apple Hits A Wall: A Technical Look

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Apple Inc. (NASDAQ: AAPL) shares were trading higher by $0.26 at $128.66 in Friday's session. Goldman Sachs raising its price target from $130.00 to $145.00 earlier Friday.

At this time, Apple is in the process of making a quadruple top (a pattern used in technical analysis to predict the reversal of a prolonged uptrend) three highs at the $129.00 level. After peaking on Tuesday at $128.88, Wednesday at $128.78 and Thursday at $129.03, it has peaked again at $128.88 so far in today's session, making four highs in one small area.

On many occasions, the expiration of weekly options can limit the upward or downward movement in an issue as large players attempt to defend their position in the issue. In this instance, sellers of the $129.00 calls are selling at that level to prevent them from going "in the money." This practice is also known as "pinning."

Those sellers may not be present in the market on Monday morning and the issue may clear this major resistance level and continue on to new all-time highs.

Posted-In: Pre-market outlookTechnicals Intraday Update Trading Ideas

 

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