Technical Analysis on Apple Stock, Post-Split

Technical Analysis on Apple Stock, Post-Split

Image by Pexels from Pixabay

One of the big news events in the past week has been the 4 for 1 stock split of Apple (AAPL). And, right after the split occurred, the stock tanked pretty steeply. And although most of the entire stock market tumbled, one wonders if the whole thing was influenced by AAPL, the world’s most valued company in the world.

Let’s explore the chart a little bit…

Apple Stock, Post-Split…

AAPL: – 20 Day Chart

Elliot Wave Oscillator

Looking at the bottom indicator of the chart, the ElliotOscillator, we see price action rise just above zero (see circle), and getting back into the green! This indicates the stock has once again gone ‘bullish’ and could be a buy (at least for a short-term trade). And given the fact that the previous 4 days have been deep in the red (marked by the orange lines below zero), we definitely see a reversal happening.

Combining RSI and ElliotOscillator

Above the ElliotOscillator is the RSI Indicator, and RSI tells us that price action had fallen below 30 twice! But, it’s going back up towards 70. This indicates that we are moving from ‘oversold’ and towards ‘overbought’. Generally, you want to buy a stock when RSI is low and around of below 30. If you are going to sell a stock you’ll want to sell in while the stock is in ‘overbought’ territory before it starts reversing back towards 30.

What VolumeAvg Tells Us

This morning you could see that AAPL reversed and rebounded back into the green. VolumeAvg tells us that there are more buyers today than in the previous 4 days, signaling a definite rebound.

In Summary

The overall signals this morning tell us that a rebound is occurring. And that AAPL had gone through a post-split hangover of sorts. So, once the dust has settled, which could take a few more days to several weeks, would should see the stock begin to uptrend again. Of course, providing there are no breaking news that would cause the stock to plummet again.

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randomguru

Portfolio Manager & Musician

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