AAPL, GOOG: Week Ahead - Stock Chart Analysis
Blue chip stocks have suffered in the last few sessions as the major equities benchmarks continue to meet selling pressure. This is not entirely surprising, given that the summer months tend to be less positive for stocks. We also have negative geopolitical headlines that have pushed day traders to safe haven assets (like gold, silver, or the US Dollar).
“Stock markets have been trending higher, and these bull runs have been largely confirmed by strong earnings,” said Vlad Karpel, options strategist at TradeSpoon. “But given traditional summer trading conditions it is not surprising to see some profit-taking and pullback in equities.” In many cases blue chips set the tone for what is likely to be seen in the markets as a whole, and here we look at some potential trading strategies for next week. Here we look at the latest impact in key blue chip stocks: Apple, Inc. (NASDAQ: AAPL) and Google, Inc. (NASDAQ: GOOG).
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Apple, Inc. (NASDAQ: AAPL)
Critical Resistance: 99.05
Critical Support: 90.20
(Chart Source: CornerTrader)
Apple, Inc. / AAPL Stock Trading Strategy: Indicator readings suggest downside correction. Wait for prices to trade near 90 before getting long again.
The bullish trend in AAPL continues, with the stock taking the stairs and moving significantly higher during the post-April period. Prices have started to deviate from their 100-day and 200-day moving averages and this suggests that we will need to see a corrective pullback sometime soon. Further evidence here can be seen in the bearish RSI reading on the daily indicator. Downside moves should be viewed as buying opportunities, however. First level to watch is 90.20.
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Google, Inc. (NASDAQ: GOOG)
Critical Resistance: 610
Critical Support: 520
(Chart Source: CornerTrader)
Google, Inc. / GOOG Stock Trading Strategy: Prices starting to look over-extended in the short-term. Wait for a move back to the 50% Fib retracement at 520 before entering into long positions.
Stock prices in GOOG continue to push forward with a strong bullish uptrend that started gaining momentum last October. Using that move as the basis for Fibonacci, we can see a confluence of historical support that is seen with the 50% retracement at 520. For those looking to re-establish long positions this marks an excellent buy area of prices decline in the next few weeks. Stop losses can be placed below 500, as this is an strong area of psychological support that is likely to be protected by buy orders.
