Is Apple Setting Up for a Big Move?

NASDAQ: AAPL | Apple Inc. News, Ratings, and Charts

AAPL – A chart pattern known as a symmetrical triangle has formed in the chart of Apple Inc. (AAPL). This occurs when a down trending resistance combines with an up-trending support line. If the stock breaks through either level, a big move is expected. Read more to learn how to take advantage of this trading opportunity.

Apple Inc. (AAPL) designs a wide variety of consumer electronic devices, including smartphones, tablets, PCs, smartwatches, AirPods, and TV boxes, among others, with the iPhone making up the majority of total revenue. In addition, the company also offers a variety of services such as Apple Music, Apple TV+, and Apple Pay, among others.

The company saw continued momentum in its Services and segment and strong performance from iPhone, iPad, Mac and Wearables in the most recent quarter. However, manufacturing disruptions and silicon shortages are expected to have a negative effect in the next quarter. Growth in its Services segment is also expected to decline.

AAPL has a strong balance reflected by its $62.6 billion cash balance at the end of the most recent quarter. This compares favorably to its short-term debt of $15.6 billion and has led to a Quality Grade of B in our POWR Ratings system. Analysts expect earnings to rise 11.9% year-over-year in the current quarter and fall -5.7% in the following quarter.

The stock looks a tad overvalued with a forward P/E of 26.81. AAPL was showing bullish momentum from early June through early September, before performance dipped in September. The stock rebounded in October, but performance has been mixed since as shown in the chart below.

Take a look at the 1-year chart of AAPL below with my added notations:

Chart of AAPL provided by TradingView

AAPL is consolidating within a common chart pattern known as a symmetrical triangle. A down trending resistance combined with an up-trending support forms the triangle pattern (blue). Since there is no true way to know which way the stock will break, traders often wait for the breakout or breakdown before entering a trade.

Click Here to Read the Greatest Trading Book Ever Written

A trader could enter a long position on a break above the down trending resistance with a protective stop set under the entry level. However, if the stock were to break below the trend line support, a short trade could be entered with a protective stop above the trend line.

Want to Discover More Great Trades?

What is better than finding the 1 attractive stock in this article?

Discovering 5 timely trades…like the ones in this new special report. Click below to claim your free copy now!

5 Stocks Ready to BREAKOUT!

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


AAPL shares fell $0.16 (-0.11%) in premarket trading Wednesday. Year-to-date, AAPL has gained 14.60%, versus a 26.59% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
AAPLGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investors: Are You Ready for November?

The S&P 500 (SPY) tumbled to end October. Is that a harbinger of more downside to come? Or will the bull market return with gusto? Investment pro Steve Reitmeister shares his time market views including a preview of his favorite stocks. Get the full story below...

3 Cybersecurity Stocks Defending Against Digital Threats

The demand for cybersecurity solutions is rising as digital threats and sophisticated cyberattacks continue to escalate. Therefore, it might be wise to keep track of cybersecurity stocks, CrowdStrike (CRWD), Palo Alto Networks (PANW), and Fortinet (FTNT), as they offer innovative solutions presenting further growth opportunities. Continue reading...

3 Oil Stocks With High Upside as Global Demand Rebounds

The outlook for oil demand growth appears promising despite economic uncertainties and worldwide supply deficit. Amid this, investing in quality oil stocks Enterprise Products Partners (EPD), Marathon Oil (MRO), and Plains All American Pipeline (PAA) could be ideal as global demand rebounds. Read more...

3 Tech Stocks Under $10 That Could Deliver Big Gains

The technology industry is booming, driven by breakthroughs and significant government investments. Thus, incorporating affordable tech stocks, Sprinklr (CXM), Sabre Corporation (SABR), and Cricut (CRCT) into your portfolio provides an accessible entry point to capitalize on the industry’s growth. Read more…

2 Concerns for Investors in October

The S&P 500 (SPY) may be touching all time highs...but recent action points to concerns on 2 fronts: inflation and earnings. Investment veteran Steve Reitmeister shares his views on these 2 timely topics along with a preview of his top stocks to buy now.

Read More Stories

More Apple Inc. (AAPL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AAPL News