The primary trend for Apple Inc.'s stock has been rising for almost a decade, with sporadic dips and sideways moves in between. By examining the weekly chart, we can see that the stock is trading inside of a long-term ascending channel, which is projected to carry the price upward throughout the next few months.
The price is held in place by the 50-moving average, which also encourages the upward trend to continue. But we also see that the stock has lost its bullish momentum and closed lower last week, which suggests that there may be a short-term bearish correction coming.
Negative Adjustment
A bearish inclination is anticipated in the upcoming period, particularly after confirming the break of the $210.35 minor support level. The primary corrective targets begin with testing the $193.90 areas. It is important to note that breaking this level will extend the bearish wave to target the $180.55 then $167.22 areas primarily.
A negative catalyst is required to initiate the potential bearish wave in order to confirm the bearish correction. Shorter time frames reveal that the price is building a head and shoulders pattern, with a confirmation level at $220.75. In order to reach the stated goals, a breach of this level would put pressure on the price to cross over the short-term ascending trend line and validate the beginning of the bearish downturn.
