These price charts reveal direction and indicate possible support levels for 2 of the big name tech stocks. After the apparently tariffs-related market reaction up near previous peaks, can we find anything different about individual stock price movement? Has anything changed significantly?
By identifying trend and by finding the previous levels where significant amounts of buying or selling showed up, this type of technical analysis may help to paint a picture of relative health or sickness. These are the daily and weekly price charts for Microsoft and Apple.
Here’s the daily for Microsoft:
First, the stock took out the October, 2018 previous peak, no problem and continued onward and upward. The late April, 2019 gap up to the 130 level proved too much, even for a Bill Gates-run company. Sellers finally came in and have now filled the gap.
The price dropped below the up trend line connecting the late December, 2018 low and the March, 2019 dip. Today, it’s back above the line. Trading continuously above the Ichimoku cloud since February might be seen as highly positive.
Here’s the weekly chart:
It’s a thing of beauty, isn’t it? Up trend in place without serious interruption from late 2015 until the present moment — wow. The price has never dropped below the Ichimoku cloud from then until now.
What levels could it drop to from here before finding support? First, there’s that 115 level where it peaked last summer — buyers who held on will be making a decision right there whether to keep on. Then, there’s the December, 2018 low down just below 95. Some serious buying came in right there.
Okay, here’s the daily price chart for Apple:
It’s clear that the big rally off of the late December, 2018 lows failed to take out the previous high up around 230 back in early October, 2018. Note that the up trend line connecting the early January, 2019 with the early March dip has been penetrated on the downside.
Apple is back inside the up trending Ichimoku cloud. Possible support levels? How about the 2 gaps further down on the chart — in March at 172.5 and in late January near 157.5 — where buyers got so excited about getting in that price skipped a few levels.
Here’s the weekly chart:
You can see that the up trend line connecting the summer 2016 lows with the early 2018 dips has been taken out in October/November. The stock closed below the Ichimoku cloud and, with the exception of a brief peak in late April, has stayed below it.
The autumn, 2018 low down near 140 may be likely to provide significant support since so many buyers appeared at that level. Whether Apple drops that low again, who knows? But that’s where buying showed up previously, for sure.
Investors sometimes think of these big tech names as basically trading together — that’s how it’s often covered in the business/financial media. A look at the charts of these 2 major NASDAQ components shows how different they look when studied closely.
I do not hold positions in these investments. No recommendations are made one way or the other. If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.