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 - Get Rating) 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


Trump or the Fed More Important to Stock Investors?

The S&P 500 (SPY) is flirting with new highs once again. But it is not very clear what is driving these stock price gains. That is why Steve Reitmeister shares his latest views including a market outlook, trading plan and top picks to stay on the right side of the action.

3 Dividend Growth Stocks for Long-Term Wealth

Dividend-growth stocks offer steady income and long-term value. With the Fed holding rates and inflation expected to ease, now is an opportune time to invest in companies like AbbVie (ABBV), Energy Transfer (ET), and Cheniere Energy (CQP) that consistently raise payouts. Read more…

3 Sub-$10 Tech Stocks with Multibagger Potential

The tech market is booming, fueled by AI, cloud computing, and digital transformation. With next-gen software, automation, and 5G driving growth, investors have massive opportunities. For those seeking high potential without the hefty price tag, sub-$10 stocks like Yext, Inc. (YEXT), Eventbrite (EB), and inTEST Corp. (INTT) could be your next big win. Read more...

Viavi Solutions vs. Lumentum Holdings: Which Optical Tech Stock Shines Brighter?

The optical tech industry is well-positioned for growth due to technological advancements and increasing demand for seamless connectivity. So, let’s analyze optical tech stocks, Viavi Solutions (VIAV) and Lumentum Holdings (LITE), to determine which optical tech stock shines brighter. Read on...

Investors in “Wait and See” Mode

Have you noticed that the S&P 500 (SPY) has been trading in a tight trading range of only 6,000 to 6,100 the past few weeks? Steve Reitmeister shares why this is happening along with a game plan for being on the right side of the market action. Read on for the full story...

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