This Bullish Pattern Is Forming In Apple Stock After New iPhone, Watch, AirPods Launch

Zinger Key Points
  • Apple's downtrend may have ended after the stock printed a bullish double bottom pattern Tuesday and Wednesday.
  • Bullish traders want to see the tech giant break up above a descending trendline.
This Bullish Pattern Is Forming In Apple Stock After New iPhone, Watch, AirPods Launch

Apple, Inc AAPL was trading slightly higher at one point in the premarket Thursday, but the stock opened lower after U.S. Federal Reserve Chair Jerome Powell began to speak at the Cato Institute Monetary Conference shortly after 9 a.m. 

Bullish investors were hoping Apple’s annual new product launch on Wednesday would bring bullish momentum into the stock, which has been trading in a fairly consistent downtrend since Aug. 17.

Among the new products, the tech-giant released four new iPhones — the iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max — and three new Apple Watch models.

The new iPhone models connect through digital eSIM cards and include a new free emergency SOS via satellite feature, with service sent to launch in November through Globalstar, Inc GSAT.

Despite the S&P 500 spiking up above Wednesday’s high-of-day by mid-morning, Apple continued to consolidate sideways due to low volume, indicating traders and investors may be feeling indecisive about which direction the stock may be headed next.

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The Apple Chart: Apple’s most recent lower high within its downtrend was printed on Sept. 2 at $160.36 and the most recent lower low was formed at the $153.60 on Tuesday and Wednesday. The lower low created at the same level on two separate days may have settled Apple into a double bottom pattern, which is bullish.

  • The recent decreased volatility paired with the double bottom may also be helping Apple to form a rounded bottom pattern, which could now begin to help the stock trade higher.
  • In order for that to occur, the stock will have to cross up above a descending trendline that has been acting as resistance since Aug. 18.
  • When a stock breaks up from a descending trendline, a larger move to the upside can occur. Bullish traders will want to see a potential break up from the area take place on higher-than-average volume on smaller time frames to indicate the trendline break was recognized.
  • Apple has resistance above at $158.09 and $162.14 and support below at $153.92 and $150.

See Also: Apple Falls Prey To China's "Dire" Covid Lockdown Shortly After iPhone 14 Launch

Photo courtesy of Apple. 

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