There are a number of things to like about the daily Apple (APPL) chart. The first is it hasn’t collapsed like the rest of the big technology names.
That is, the trajectory of the stock price has been basically sideways. Primary levels of support have held. Apple shares have been trading around their 50 day moving average. Positive money flow is improving, suggesting new buying interest. This is all good.
There are, of course, some negatives that are apparent on the daily Apple chart. The stock is down just over 5% from its high this year. Moving average convergence/divergence has been in bearish divergence to price, since the beginning of the consolidation period that began last month. Money flow did go negative for most of that time, but as mentioned, it is now back in positive territory.
Apple has massively outperformed the broader technology sector. Its year-to-date performance is 18% greater than that of the Technology Select Sector SPDR Fund (XLK). There is no reason to believe it will not continue to outperform.
There are clearly defined bands of support in the $215 level. They will likely be tested if there is further weakness in the tech space. There is also a defined level of resistance $223 which, if broken, could see the stock make a move towards its recent highs.
The technology sector has been under tremendous pressure over the last several months. No stock has been immune. But despite that pressure, and potentially negative news out of China, Apple shares have managed to hold after only a small initial decline.
The Apple chart as it stands right now is the best looking of the big technology names.