These Two Charts Illustrate Why Apple Shares Could Soon Soar Higher

apple-aapl-logoComputer and mobile device maker Apple Inc. (NASDAQ:AAPL) has been stuck in a long-term downtrend, but some key technical indicators are lining up that could signal a strong move to the upside soon.

From Bespoke:

After making a “higher low” when it bottomed at the end of June during the Brexit market sell-off, Apple (AAPL) has rallied roughly 15%.  Included in this rally is the 6.5% gain it experienced on July 27th following its Q2 earnings report.

The reason we’re pointing out Apple this morning is because it’s finally testing a break above the top of its 12-month downtrend channel.  This is a first-step in turning a downtrend into a new uptrend.
aapl080416

As you can see in the chart above, Apple’s big bounce following its latest report has broken the now year-long slump. With the iPhone 7 announcement expected this fall, the company could be on the verge of a big upgrade cycle and a return to revenue growth.

But that’s not all. Kicking it back to Bespoke again:

The longer-term chart for Apple (AAPL) is notable as well.  As shown below, the recent pullback for the stock from peak to trough looks very similar to the one that occurred back in 2012/2013.  So far, the bottom of its seven-year uptrend channel has held.  As long as that’s the case, “technical” investors will find it attractive.

aapl0804

So there you have it, not one, but two bullish charts for Apple illustrating some bullish technical setups.

Apple shares posted small gains in Thursday afternoon trading to $105.63. The stock is mostly flat year-to-date, versus a 6% gain in the benchmark S&P 500 during the same time period.

AAPL-2016-08-04

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