Apple (NASDAQ:AAPL) has had a roller coaster of a run over the last 12 months. By utilizing basic technical analysis there is a wealth of knowledge to be learned from Apple's stock chart. This post will highlight 7 great lessons every investor should take to heart.
2007 was a year of continuous all time highs for Apple. After peaking at a new high of $202.96 on December 27th, 2007 the stock tumbled over 40% in January alone as the overall market tanked. Since then Apple rallied back above $190 in May but has struggled since.
Below are both a weekly and a daily look at Apple (AAPL) which will be broken down below:
1. The blue 1 shows where Apple broke out of base in September to claim fresh all time highs above $148. This break out eventually lead to the stock breaching $200 a share in December.
2. The blue 2 shows a very key breakdown in the stock as it fell back into its base below $196 for the 2nd time in three weeks.. This sell signal was critical for long term investors as Apple went on to lose over 40% in January.
3. The blue 3 shows where the bulls took control back of the stock after establishing a small base from January through March. The breakout above $140 to fill the gap on 1/23/08 was the start of a fresh rally that would lead the stock all the way back to the $190 level.
4. The blue 4 shows a small bull flag that was setup in early April. Apple stock ran another 25% from the time it broke free from this small setup.
5. The blue 5 shows where Apple later found key resistance at $180 a share. In fact we posted on Apple's $180 resistance back in August. This $180 level was never broken and eventually lead to the stocks next big price slump.
6. The blue 6 shows where Apple could not hold up at $154 support and fell below claiming lower lows. This was another key sell signal for the stock.
7. The blue 7 shows how Apple has tumbled over 40% in September and now has gapped below long term support at $120 which can be more clearly seen in the weekly chart.
Apple's stock chart is a great example of the effects that a souring economy and crummy stock market can have on a once big tech high flier. It offers stock chart education that is priceless for any investor.
---> Next Chart, Identifying 8 Key Points on Google’s Stock Chart
- Example 15, 9 Lessons to Learn Regardless of a General Motors Bankruptcy
- Example 14, Identifying 8 Key Points on Google’s Stock Chart
- Example 13, Apple (AAPL) <–- Currently Viewing
- Example 12, A Technical Look at the Washington Mutual Brankruptcy
- Example 11, Support and Resistance Example, Lehman Brothers Brankruptcy
- Example 10, Descending Channel Example, Fastenal (FAST)
Make $42 Million Trading Stocks! Learn technical analysis with Dan Zanger, World Record Holder who turned $15,000 into $42 million. Click here to learn how.