Apple (AAPL) is by far the most closely followed individual stock in the market, so when it ran into trouble in July following its most recent earnings report and finally started going down again, a whole lot of shareholders began to worry. Below is a 12-month price chart of the stock. You can see the sideways trend that the stock was in for the first six months of 2015. Instead of breaking out to the upside following this sideways action, it broke to the downside, and a new short-term downtrend was formed. Right now, just looking at the 12-month chart, the pattern is not very enticing.
But what about the long-term chart of Apple’s stock? Stretching the chart out to five years looks a lot better. As shown, just above the $100 level where shares recently traded down to sits key support marked by the stock’s 2012 high and the bottom of a 2-year uptrend channel. The recent lows could definitely have been a successful test of long-term support that marked a solid buying opportunity. Only time will tell.
Taking the negative view, if the stock does end up re-testing support just above $100 and can’t hold, we could be looking at another late 2012/early 2013 period where the stock was almost cut in half.
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