The Cupertino, California-based company has resistance above at $177.71 and $182.13 and support below at $174.33 and $171.03. Photo from Pixabay
Apple, Inc (NASDAQ: AAPL) closed Friday’s trading session 1.41% higher, leading the SPDR S&P 500 to close up 1.3% ahead of news President Joe Biden and House Speaker Kevin McCarthy had reached a tentative agreement to raise the debt ceiling.
The move caused Apple to close on the median line of a rising channel pattern, which the stock has been trading in since March 22.
Apple formed a bullish Marubozu candlestick on Friday, which suggests the stock may trade higher on Monday.
The second most likely scenario is that Apple forms an inside bar pattern, which would lean bullish for continuation.
If Apple trades higher on Monday, the stock may find resistance at the upper trend line of the channel. If that happens, bearish traders can watch for the stock to print a bearish reversal candlestick, such as a doji or shooting star candlestick, at the top of the channel.
Should Apple reject the top of the pattern, the stock may drag the market lower, which could increase volatility. Traders wishing to trade the volatility in the stock market can use MIAX’s SPIKES Volatility products. The products, which are traded on SPIKES Volatility Index (SPIKE), track expected volatility in the SPDR S&P 500 over the next 30 days.
If Apple breaks up through the top of the channel, bullish momentum may enter to drive the stock up toward the all-time high of 182.94, where the stock could find resistance at least temporarily.
The Cupertino, California-based company has resistance above at $177.71 and $182.13 and support below at $174.33 and $171.03.
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
Edited by Arnab Nandy and Virginia Van Zandt
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