Stock of the day: Apple
12 July 2023
Today's market overview has a significant focus on Apple Inc., one of the most traded companies globally. Since the onset of 2023, Apple has demonstrated a robust and consistent uptrend, making it a textbook example of steady growth. It's been rising along the red uptrend line, breaking through various resistances from time to time.
However, a correction phase has been observed at the beginning of this month, with prices descending from $194 to $186. Notably, the most recent candle formed on Apple's chart is a hammer - a candlestick pattern characterized by a long lower wick and a small upper body. This pattern is significant because it suggests a potential price reversal and is occurring close to the uptrend line, often hinting at a viable buying opportunity.
In accordance with this, we can conclude that a buy signal is present as long as prices maintain above the red uptrend line. Of course, an alternative bearish scenario could play out if prices break below this uptrend line. If this occurs, the bearish outlook suggests a price drop towards the $177 support level, depicted by the green line on the chart. Nonetheless, as long as the price sustains above the red uptrend line, the bullish sentiment remains the more probable scenario.