u s shares highlights apple inc 5 871672015

Apple Inc. (AAPL) – Potential multi-month bullish trend to resume above 125.60/118.90 support 

(Click to enlarge charts)

*Note: Apple will announce its Q3 2015 earnings result on Tuesday, 21 July 2015.

With reference to our last research highlight dated on 07 April 2015, Apple (AAPL) has managed to shape the expected upswing and met the first upside target at 133.60 before a consolidation materialised.

Please click on this link for more details on our previous highlight on Apple. Let us review its current technical elements before its Q3 2015 earnings announcement.

Key elements

• Apple has tumbled by 11% from its 134.54 high printed on 28 April 2015 but this decline in price action has managed to stall at the key 118.90 support (see weekly & daily charts).
• The key 118.90 support also confluences with the upward sloping 34-week Moving Average (in blue) that has supported every steep decline seen in price action since 16 September 2013 (see weekly chart).
• In terms of Fibonacci analysis, the key 118.90 support corresponds closely with a Fibonacci retracement cluster from two different degrees, 23.6% Fibonacci retracement of the up move from 31 January 2014 low to 24 February 2015 high and 50% Fibonacci retracement of the recent up move from 06 January 2015 low to 24 February 2015 high (see daily chart).
• Price action has formed a weekly bullish “Hammer” candlestick pattern at the key 118.90 support (see weekly chart).
• In terms of fractal analysis, the recent consolidation (as depicted by the blue boxes) seen from its 24 February 2015 high is similar (in terms of timing and magnitude) to the previous consolidation seen during the period of 05 December 2013 to 15 April 2014 before Apple resumed its multi-month upside movement (see daily chart).
• The recent up move from its 10 July 2015 low has been accompanied by an increase in volume (see daily chart).
• The former trendline resistance joining the highs since 26 May 2015 is now pull-back support at 125.60 (see daily chart).
• The next significant resistance zone will be at 141.10/145.30 which is defined by multiple Fibonacci projection clusters from various degrees (see weekly chart).
• The relative strength chart of Apple versus the benchmark S&P 500 has started to show signs of outperformance after consolidating for the past 2.5 months since 27 April 2015.

Key levels (1 to 3 months)

Intermediate support: 125.60

Pivot (key support): 118.90

Resistance: 133.60 & 141.10/145.30

Next support: 103.70

Conclusion

Technical elements have turned positive for Apple and any potential pull-back in price action is likely to be held by the key support zone at 125.60/118.90 before a potential multi-month rally resumes towards the 133.60 range top before targeting the 141.10/145.30 significant resistance zone.

On the contrary, failure to hold above the 118.90 weekly pivotal support is likely to damage the multi-month bullish trend for a correction towards the next support at 103.70 in the first instance.

Source:  Charts are from eSignal

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