Apple May Be Oversold
Apple surged to a new record high around Christmas, and traders may see an opportunity in its latest pullback.
The first pattern on today’s chart is the weekly low from December 9 at $241.75. The iPhone maker came within $0.07 of that price last Thursday before bouncing. Is support in place above the peaks last July and October?
Next, that level was near a 50 percent retracement of the rally that began in early November. Holding that spot may confirm AAPL’s direction is bullish.
Third, stochastics have dipped to an oversold condition.
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The first pattern on today’s chart is the weekly low from December 9 at $241.75. The iPhone maker came within $0.07 of that price last Thursday before bouncing. Is support in place above the peaks last July and October?
Next, that level was near a 50 percent retracement of the rally that began in early November. Holding that spot may confirm AAPL’s direction is bullish.
Third, stochastics have dipped to an oversold condition.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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