AAPL ends the day on a bullish note closing near the high of the day
Apple Inc. (AAPL) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AAPL ended the month 16.51% higher at 425.04 after surging $40.28 (10.47%) today on high volume, strongly outperforming the Nasdaq 100 (1.78%) following Thursday's earnings report. This is the biggest single-day gain ever recorded for Apple. The last time we've seen such an unusually strong single-day gain on June 10th, AAPL actually lost -4.80% on the following trading day. Today's close at 425.04 marks the highest recorded closing price ever. Trading up to $8.18 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (AAPL as at Jul 31, 2020):
AAPL reported earnings of $2.58 per share after Thursday's market close. With analysts having expected an EPS of $2.04, Apple Inc. surpassed market expectations by 26.5%. The company's last earnings report was released on April 30, 2020, when Apple Inc. reported earnings of $2.55 per share beating market expectations by 22.6%.
Friday's trading range has been $22.30 (5.42%), that's far above the last trading month's daily average range of $9.70. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AAPL.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since July 8th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 384.08 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Apple. Out of 90 times, AAPL closed higher 65.56% 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 68.89% with an average market move of 1.53%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are FB gaining 8.17% and AMZN closing 3.7% higher. On the flipside the worst performer has been GOOGL closing -3.28% lower. Read more