Apple Stock Looks Headed For All-Time Highs, But This Indicator Suggests The Local Top Is Near

Apple, Inc AAPL has not yet broken up from the rising channel pattern in which it's been trading, but the tech stock in has almost reached its previous all-time high of $182.94, printed on Jan 4, 2022. Benzinga called this out as a likely scenario on May 29.

Apple closed Friday’s trading day with a bullish Marubozu candlestick and was likely to trade higher on Monday. The stock gapped up to start the week and has continued to trend higher with the channel.

On Thursday, Apple almost printed a bullish engulfing candlestick, which could suggest higher prices will come on Friday to close out the week.

A bullish engulfing candlestick pattern forms when a small red candlestick is followed by a large green candlestick with a body that completely engulfs the body of the previous day’s candlestick.

For the pattern to be valid, the engulfing candlestick must close above the highest price of the previous day’s candlestick, and the pattern is more powerful if it is preceded by a number of red candles.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Apple Chart: If Apple continues to trend higher within the channel pattern, or breaks up from the formation, the stock is likely to find resistance at the previous all-time high. If that occurs, it could drag the stock market lower, at least for a short period of time, which could increase volatility.

• Traders wishing to trade the potential future volatility in the stock market can use MIAX’s SPIKES Volatility products. The products, which are traded on the SPIKES Volatility Index SPIKE, track expected volatility in the SPDR S&P 500 over the next 30 days.
• Apple is trading in a clear and confirmed uptrend, with the most recent higher low formed on May 24 at $170.52 and the most recent higher high formed at the $176.39 mark on May 19.
• Since then, Apple hasn’t retraced to form its next higher low, which makes the probability for an imminent retracement likely.
• The stock is also likely to find a local top soon because Apple’s relative strength index (RSI) is measuring in at about 72%. When a stock’s RSI reaches or exceeds the 70% mark, it becomes overbought, which can be a sell signal for technical traders.
• Apple has resistance above at $182.13 and $182.94 and support below at $177.71 and $174.33.

Read Next: Let's Put To Bed The Argument S&P 500 Will See A Drawdown After Being Lifted Up By Only 5 Stocks

Photo via Shutterstock.