Chart of the Day – Wednesday, April 24, 2024

So, the biggest, baddest company in the world is going to complete a double top right in the middle of a bull market for stocks?

Is that really the bet you want to make?

I’m making the bet this is just a failed top in $AAPL pic.twitter.com/ABNilAZNMl

— Steven Strazza (@sstrazza) April 24, 2024

Today’s Chart of the Day was shared by Steve Strazza (@sstrazza).

• Apple ($AAPL) is on a three-day winning streak, gaining +2.1% this week. It’s trying to reclaim a major support level after violating it last week.

• $AAPL peaked in mid-December, forming a failed breakout or double top. It hit a 52-week low on Friday, down -16.5% (weekly basis). The stock has lost half a trillion dollars in market cap and is no longer the largest in the S&P 500.

• Steve points out that $AAPL has set the stage for a bullish reversal. While price made new lows last week, RSI refused to reach oversold, forming a bullish momentum divergence. If $AAPL reclaims $170, it will mark a failed top.

The takeaway: $AAPL could trap the bears below $170. Doing so would represent a failed top. As the saying goes, “From failed moves come fast moves in the opposite direction.”