A few weeks ago, I wrote a post about Apple (AAPL) and the importance of the AAPL uptrend line. Fast forward to today, and this critical support is still holding… and it’s still important.
Why? Well, for one, uptrends are a psychological level for investors. Although “shakeouts” can occur near heavily watched price levels (i.e. false breakdowns), it is usually a sign to abort near-term trades when a trend line is broken. In short, although losing an uptrend line doesn’t necessarily mean that the macro “move” is over, it does mean that near-term risk is elevated.
Apple Stock Chart – AAPL Uptrend
The second reason that the AAPL uptrend line is important, has to do with its proximity to a prior resistance level (now support). On three occasions, Apple’s stock price has pulled back to test support at previous highs. The latest occurred a couple weeks back. The AAPL uptrend line is moving higher, but still near this psychological support. This makes the $530-$540 zone an important area to hold. Trade safe.
No positions in any mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.