rebound on the support?

Tonight is the “big night” for Apple! In a few hours, consumers of the brand will be able to discover all the novelties that the firm is planning for the coming months. What should we expect for the stock price?

Like every year in September, Apple will present its products and new products during its “keynote”.

As some of the products announced are often not available until later in the season, it is important for the Cupertino company to start locking in consumers’ buying intentions as soon as possible to achieve its sales objectives for the end of the holiday season. ‘year.

What about the course of action?

Note that since last May (red arrow) the stock has left its uptrend channel (blue).

Currently, it is moving more in what appears to be a forming range (a sideways drift) – but with some volatility.

Volatility that offers significant trading opportunities – as long as we manage to take a position on “key” levels. Chart levels, as usual, must be confirmed by a technical signal.

And it is precisely one of these “key” levels that is currently being tested. It corresponds to a 75% retracement of the previous upward wave. It is also an important graphic support: the green horizontal rectangle “S1”.

Be careful, this price zone (between $150 and $155) also acts as a pivot with the consequence of strong upward and downward accelerations when said pivot is passed.

Rebound or no rebound to follow? Follow the leader !

In short, the action has just begun to test this “key” area once again.

To see how the market will react to it, but with the “keynote” in sight, things could quickly change.

Analyst firms following the stock agree on an average price target of $181 – which corresponds to a return to the “R” resistance zone (in red) and especially to a potential rebound of one good fifteen percent.

Whether we trade Apple stock or not, its reaction (bounce or breakout) from the pivot zone will be important not only for Apple, but also for indices like the Nasdaq or the S&P, given the “weight” that it represents in their calculation.

As always, we will refrain from taking a position, whatever it is, without validation of a technical signal.

The technical signal that I will follow (my guide) will be the MACD trend indicator, especially since an impulse support (in green) is also about to be tested (yellow dot). In the event of a bullish signal, the pivot will serve as support… and we can aim for a return to the latest highs.

CQFD.

Good trade,

Gilles

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