Apple Inc (APPL) is the largest multinational technology company by revenue in the world. APPL is famous for its trending products such as Macintosh, iPhone, Mac, Apple Watch and AirPod. It has expanded to create a successful ecosystem for its line of products for loyal users with Apple Pay, App store, cloud services and subscription services such as Apple TV. Apple is one of the most iconic and valuable brands in the world. It is one of the favorites amongst investors. AAPL is listed on NASDAQ and is a component of DJI, NASDAQ 100 and S&P 500 under Information Tech.

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APPL ended 2021 with a Wyckoff buying climax (BC) around $181 on 13 Dec that was accompanied by increased volume suggesting the presence of supply. The price attempted to break above $180 on 3 and 4 Jan 2022 but was unable to stay committed. This proved to be a Wyckoff upthrust (UT) when the price subsequently retraced to the middle of the range around $150.

There was a rather sharp rally in mid March but the price failed to touch $180 and drifted down. The increase in volume from 27 Apr onwards together with inability of the price to rally up again suggests weakness ahead. The price action on 5 May is a change of character bar that was followed by Wyckoff sign of weakness (SOW). It broke the support of $135 until some presence of demand occurred on 17 June.

In a testament to Wyckoff distribution phase C characteristics, the price movement launched into another sign of strength (SOS) rally in an attempt to upthrust. However, it could only reach $176 before retracing to test support around $135. There were several attempts to rally up but all were futile and formed lower highs instead. This is evidence the price is forming the last point of supply (LPSY).

The most recent price action is another down swing that retested the $135 support. This came with a spike of volume on 16 Dec, which could be absorption of supply as shown via Wyckoff’s efforts vs. results. An attempt to rally could be expected in the immediate term. 

Bias

Bearish. According to the Wyckoff method, APPL price is now at a very pivotal level. The lack of quality demand and inability of the price to rally up could see the break down to the previous range between $100 and $120.

If the price is able to commit above $145, APPL might form a new range between $135 and $145. Recent volatility in the market makes it hard to find winning stocks. In spite of that, there are techniques that Wyckoff method could help pick these winning stocks. Watch the video below to learn this trick.

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