AAPL closes within previous day's range after lackluster session
Apple Inc. (AAPL) Technical Analysis Report for Oct 09, 2019 | by Techniquant Editorial Team
AAPL ended Wednesday at 227.03 gaining $2.63 (1.17%) on low volume, slightly outperforming the Nasdaq 100 (1.13%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AAPL as at Oct 09, 2019):
Wednesday's trading range has been $2.15 (0.95%), that's far below the last trading month's daily average range of $3.70. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AAPL.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
Prices are trading close to the key technical support level at 224.33 (S1). After having been unable to move above 228.06 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 227.79. The last time this happened on September 27th, AAPL actually gained 2.35% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 229.93 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 224.33 where further sell stops could get activated. 2018's high at 233.47 is within reach and we might see further upside momentum should the share manage to break out beyond.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Apple. Out of 551 times, AAPL closed higher 53.18% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.52% with an average market move of 1.29%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are FB gaining 1.18% and GOOGL closing 1.03% higher. On the flipside the worst performer has been NFLX closing -1.18% lower. Read more