Apple Inc. Stock (AAPL) Long Term Technical Analysis October 2017 – FX Daily Report

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AAPL in September experienced setback following sale from $164.94 high. The release of iPhone 8 and iPhone 8 plus could not help the share prices recover to its opening level. The analyst from BofA Merrill Lynch told the market, though the release of new iPhone could not boost the company share prices, President Donald Trump tax reform will.

Overhaul of tax expected to reduce corporate tax from 35% to 20% which will benefit the company. Also, it is expected to give a tax break for the company which brings cash back into U.S.

Aside from hopeful outlook. More insider selling seen in AAPL share prices, in average we could see selling between $154 – $160 since Tim Cook sold his shares at $159.99 – $161.27. AAPL will report earnings result next month on 2nd November. Traders & investors will know if this insider is temporary or indication AAPL share prices topping-off.

Note: Apple will release iPhone X on 3rd November.

Click here to read September 2017 analysis

New Month

Monthly chart

AAPL in September corrected and closed near the top of the blue channel. Fortunately, October started with a bullish candlestick away from the channel. The trend continues up for AAPL, and there is no reason to place short position yet. Note: Long position at the current level also not appealing.

Weekly chart

AAPL on the weekly chart looks progressing safely above the channel with higher high and higher low. However, there is a possibility the share prices might lose steam and form shoulder-head-shoulder pattern. The right shoulder projected between $157.00 – $160.00. If the right shoulder formed and price start falling, it will test the yellow trendline. A break lower below this trendline could send AAPL down sharply to $130.00 – $135.00

Daily chart

AAPL bounce from the blue channel and move back above its daily SMA 100. The bounce limited below its daily SMA 50 where previous top consolidation range present. There is no direction yet for the share prices, it could reverse down after failing the test of SMA 50, but it also could move toward $160.00

Trade plan

The long position might need to wait. There is the possibility of AAPL breakdown in medium-long-term. $130.00 is a level to watch if the price breakdown.

The short position could be taken near $158.00 – $160.00 area with a stop above the record high $164.94.

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