Apple – A good investment

 

 

Apple has more operating cash than the US Treasury. That sounds like a good investment right?? Lets look at some Apple charts.

aapl weekly

 

A long term chart of Apple makes one thing obvious, this stock is in a clear uptrend. A major low has been set back in 2008 and Apple moved upwards since. The last serious correction occured back in 2013, but except that, there are only minor corrections.

The Wave (34 period EMAs) tracks the uptrend with extreme precision. I have drawn arrows below each minor correction which stopped exactly at value. Besides the Wave, the Force Index too does an amazing job at tracking the end of corrections. If you look closely, almost all oversold conditions on the Force Index signaled the swing low of the respective correction.

Right now, Apple stands at value with an oversold Force index, with a green impulse, and testing support (which will be shown on the daily chart). It is a great time to buy.

 

apple daily

 

 

 

The daily charts shows a major breakdown which was immediately reversed the next day. The volume was large and the breakdown looked real, so when it proved not to be, I immediately jumped in on the long side. All this happened at 120$ which is an important support level. I call the price formation on Apple a corrective double bottom as the whole correction happened inside a double bottom in a strong uptrend.

I am personally holding this stock, and I advise others to do so. I am holding it without a target in mind, I believe this is a great company and I will keep it until I change my opinion, or until I get stopped out. My stop loss is below this recent double bottom.

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