AAPL closes above its opening price after recovering from early selling pressure
Apple Inc. (AAPL) Technical Analysis Report for Aug 10, 2020 | by Techniquant Editorial Team
AAPL finished Monday at 450.91 gaining $6.46 (1.45%), notably outperforming the Nasdaq 100 (-0.49%). Trading up to $10.40 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 31st, AAPL gained 2.52% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AAPL as at Aug 10, 2020):
Monday's trading range has been $15.09 (3.35%), that's above the last trading month's daily average range of $11.19. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AAPL. Prices continued to consolidate within a tight trading range between 433.55 and 457.65 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside 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 resistance level at 457.65 (R1). Apple found buyers again today around 440.00 for the third trading day in a row after having found demand at 441.17 in the previous session and at 439.19 two days ago.
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 457.65 where further buy stops could get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Apple. Out of 73 times, AAPL closed higher 52.05% 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 69.86% with an average market move of 1.56%.
With four out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are NFLX losing -2.29% and FB closing -2.03% lower. None of the markets managed to end the day in the green. Read more