u s shares highlights apple inc 3 113202015

Apple Inc. (AAPL) – Showing potential signs of “bottoming out” above 103.70 support

Apple was featured as one of our shares highlights dated on 09 January 2014 (Intermediate term decline is likely to over). Since the last highlight, Apple has managed to hold above the key support at 103.70 as expected.

Apple will be announcing its Q1 2015 earnings today, 27 January 2015 after the market closes. Let’s us review its technical elements to shed some “light”.

Key elements  

• Since 29 December 2014, Apple has traced out an impending bullish “W” bottom configuration with neckline resistance at 114.77.
• Recent price action continues to hold above the key significant support at 103.70.
• The 103.70 support confluences with the lower boundary of the shorter-term ascending channel (in green) in place since 15 April 2014, 144-day Moving Average and a Fibonacci cluster.
• The upper boundaries of both the longer-term and shorter-term ascending channels are pointing towards the 124.40/128.80 zone (see weekly chart).
• The 124.40/128.80 zone also confluences with a Fibonacci cluster and the exit potential of the “W” bottom configuration (see daily & weekly charts).

Key levels (1 to 3 months)

Pivot (key support): 103.70

Resistance: 114.77 & 124.40/128.80

Next support: 93.50

Conclusion

Current elements are still positive for Apple and a break above the “W” bottom neckline resistance at 114.77 is likely to reinforce the continuation of its multi-month bullish trend to target the significant resistance zone at 124.40/128.80.

On the other hand, failure to hold above the monthly pivot support at 103.70 may negate the expected bullish tone to see a slide towards the next support at 93.50 (the median line of the long-term ascending channel).

Source:  Charts are from eSignal

Disclaimer

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