Apple is holding its WWDC event on Monday. Here’s what the charts say now. Hint: Today’s action could be important.
Tech stocks were cruising higher on Monday morning, but many names are now struggling to stay in positive territory.
Apple (AAPL) – Get Apple Inc. Report is one such stock, joining the Nasdaq which gapped higher and Amazon (AMZN) – Get Amazon.com, Inc. Report fresh off its 20-for-1 stock split.
Shares of Apple opened higher by 1.3%, traded up 2.2% and are now just above flat in midday trading as its WWDC event kicks off.
Here is the live blog from the event.
Going into the event, Apple enthusiasts, investors and tech-focused consumers will be looking for iOS 16, as well as updates to its iPad and other products.
As for the chart, the stock looked fairly good last week until Friday’s action, where Apple stock fell 3.9%. That put it below short-term support and left shares vulnerable to more downside. In that sense, today’s event could be pivotal.
Let’s look at the key levels now.
Trading Apple Stock
Daily chart of Apple stock.
Chart courtesy of TrendSpider.com
Apple stock closed on June 2 within a dime of its session high. Even though the stock only gained 1.7% on the day, it was an important day of action. That’s as the stock reclaimed the first-quarter low and key $150 level.
It had eclipsed this level in the prior two sessions, but it closed lower in both sessions — and both times below $150.
Then, Friday’s tumble undid all of that progress and then some, as Apple closed below the 10-day and 21-day moving averages as well.
Once Monday’s event gets underway, Apple stock will likely become more volatile. That’s particularly true later in the afternoon when the event is finished.
From here, bulls want to see $144 continue to hold as support. If it can’t hold this level, it makes Apple more vulnerable to a deeper decline. Below $140 and it’s possible we revisit the $136 to $137 support area.
The overshoot from that zone came when the stock dropped down to $133, but reversed sharply and closed higher on the day.
If Apple can hold $144, bulls want to see it reclaim the 10-day and 21-day moving averages. Above Friday’s high near $148 and the key $150 level is just a stone’s throw away.
Above last week’s high of $151.74 and we could see a push to the 10-week moving average, then the 50-day and 200-day moving averages up near $158 to $160.
Keep in mind, the market is looking for direction right now. It’s holding support, but below a number of key levels still. Apple is the largest U.S. stock, so it could have a significant impact on the market in the days and weeks ahead.
