AAPL dominated by bulls lifting the market higher throughout the day
Apple Inc. (AAPL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AAPL ended the week 3.63% higher at 318.89 after gaining $2.04 (0.64%) today on low volume, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AAPL as at May 22, 2020):
Friday's trading range has been $3.86 (1.22%), that's far below the last trading month's daily average range of $6.79. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AAPL. Prices continued to consolidate within a tight trading range between 310.32 and 320.89 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern.
Prices are trading close to the key technical resistance level at 319.69 (R1). The stock found buyers again today around 315.37 for the third trading day in a row after having found demand at 315.87 in the prior session and at 316.52 two days ago. The last time this happened on March 27th, AAPL gained 2.85% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 320.89 where further buy stops might get activated. With prices trading close to this year's high at 327.85, upside momentum could speed up should the share be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Apple. Out of 106 times, AAPL closed higher 59.43% 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 67.92% with an average market move of 1.70%.
With two of the other FAANG Stocks closing higher and two closing lower today, the winners of the day are FB surging 1.52% and GOOGL gaining 0.46%. On the flipside the worst performers have been NFLX closing -1.59% lower and AMZN losing -0.4%. Read more