Long-Term Moving Average
Weekly-200SMA (Simple Moving Average) gauges long-term sentiment of the stock, so it is important to check them when the stock sees its correctional move. If you are a long-term investor on any particular stock, you want to see the weekly-200SMA is rising and the stock is holding above that level if/when the correctional move happens (as long as it stays above it, there is a good chance the stock will move back up in the primary term).
2009 & 2013, both times, Apple (AAPL) has bottomed and reversed back up after hitting the Weekly-200SMA, so it’s definitely a level to watch for a possible bottoming action here as the stock is ‘zig-zagging’ here in the vicinity after hitting the moving average.
Weekly-Chart with 200 Simple Moving Average
Bullish Divergence
This is a classic technical analysis when it comes to assessing the major bottoming signals. Bullish divergence occurs when the price-action cultivates lower lows after the decline, while the oscillators form higher lows (hence the word “divergence”) as you can see in the chart below.
Again, in 2009 & 2013 we bottomed this way, and we are forming, yet, another bullish divergence here; not to mention we just covered weekly-200SMA also condoning this bullish divergence pattern in the vicinity.
Weekly-Chart With The Oscillators
Fibonacci Retracement
I always say that Fib. 50% Retracement could be the “magic” number. Back in 2013, it was the 50% retracement where the stock has bottomed.
Today, we are right on that 50% retracement and maybe it means nothing all by itself, but when you have the weekly-200SMA in the vicinity and the bullish divergence to fuel the flame, I think we have a good chance that Apple (AAPL) is getting ready to get back up and cultivate an uptrend from here on (of course with minor-term ups and down–nothing goes straight up).
Weekly-Chart With Fibonacci Retracement Tool
Long-Term Signal
Currently monthly-chart “Bullish Cross” is in progress as we start the month of August with bullishness in this stock. Again, this is the same vicinity (as the technical levels/signals I’ve shared on this post) where the bullish-technicals are over-wrapping with each other. In which case, the price-action is implicating that the evidences are piling up here that supports the assertion that the Apple (AAPL) has bottomed (of course with minor- to intermediate-term pullbacks and consolidations on the way).
AAPL Monthly-Chart with the Oscillator
