Is Apple A Buy At These Levels?

appleThe price action last week and today in the stock of Apple was reflecting the perception that Apple's new offerings were not up to par and offered no major breakout technology. The press and the general markets were generally negative on Apple's latest offerings. The new iPhone 5S and 5C have been largely pooh-poohed in the media.

I think the market has overreacted in the sense that no company, not even Apple, can keep coming out with groundbreaking technology with every press event they host. I believe the market has overlooked the fact that these are very strong offerings and that Apple has a loyalty base like no other company on the planet, myself included.

The security fingerprint technology that Apple introduced is quite remarkable, and lends itself to so many other applications. Security is going to become more and more important to even the average smartphone or tablet user in the future. Apple's introduction of this technology is going to be very important in the corporate and enterprise world and may send a crippling blow to Blackberry. Fingerprint security could be used in so many yet-to-be-discovered applications for financial transactions and online commerce. It has an enormous future, but the market just hasn't recognized it yet.

As a reader of this blog, you know I look at the market on a technical basis and one of my technical indicators is telling me that Apple may be close to a turning point. The Williams%R indicator, shown in the form of yellow lines on today's chart, indicates the cyclical pattern of Apple and shows that this market is very oversold. Apple has also pulled back to an area of previous long-term resistance. This resistance area should now act as support.

The stock of Apple has also pulled back to our major trend indicator, which remains bullish. This is not so unusual to have a retest of the long-term Trade Triangle signal, in Apple's case at $465.75. The current pullback in Apple is approximately a 50% retracement and is a Fibonacci support area.

This week I expect Apple to begin to find support around current levels, give or take $5 to $10. I believe that Apple is close to an important cyclic low period and the roll out on Wednesday of Apple's IOS7 system could be the catalyst to once again turn Apple to the upside.

What do you think?

Feel free to leave a comment.

Adam Hewison
Co-Creator, MarketClub

9 thoughts on “Is Apple A Buy At These Levels?

  1. If you look at trade triangles historically, the weekly triangle would not go green until the Williams %R signal is high, not low as it is now. Therefore, I cannot see how you can advertise AAPL as a BUY until both the Monthly and Weekly Triangles are green. You are doing what you tell your subscribers not to do -- guess at the market direction.


    1. I don't think Adam is saying this is a buy right now. I thought this chart just shows technical setups that could support a run up in the near future. I'm going to set an alert for the weekly triangle and keep an eye out.

    2. Terry,

      Thanks for your coments and insightful view into Apple. The purpose of the post was to show how cycles and fibonacci retracements are important in tandem. You are 100% correct if you are an intermediate trader wait for the green weekly trade triangle to turn green and then go long.

      If you are a long term trader the purpose of using cycles and Fibonacci retracement points is this, it allows you to potentially add to a winning position with very little risk. Not all traders are long-term and not all traders are short-term or intermediate term, that's what makes the market.

      Once again thank you for participating in the conversation.

      All the best,

      Adam Hewison
      Co-Founder of

  2. What E. Snowden has told us about your distrustful government , looks like Uncle Sam is going to get a lot of fingerprints to solve maybe a lot of crimes. Come in suckers.

  3. Given that apple along with many other US based companies have been shown to provide backdoors into their software is it really surprising that when Apple bring out a new Technology for secure services and the market laughs at them. I live in Asia, travel extensively and I can tell you that everyone I speak to is actively looking to get away from using US technology, both hardware and software. At this point it matters not what governments in any part of the world say because citizens increasingly don't trust the lying b*****ds.

  4. The fingerprint thing can offer exactly that - new security features but to be honest, in light of all the news about uh, certain info-gathering organizations, I'm not naive to think there isn't a major Orwell issue here. Do many people already have their fingerprints taken for various job-related reasons? Yes, many do. All I can say is there was just something about this 5s and the decision to include that feature that definitely didn't feel right at all. I saw this as a major step forward into the realm of out of control technology that looks great on the surface and every attempt is made to make the consumer "comfortably numb" so they will just get it and don't ask any questions. I'm trying to force myself to just "like" this new 5s so I can upgrade my 4-era iPhone but I'm getting this nagging thought that I'm walking into a trap.

    1. Chris,

      Thanks for your feedback. I am probably going to upgrade my 4S in this cycle, I did not do it for the 5, but the 5S in a differt animal. I guess at this time NSA knows all it wants to know about me ( not happy about NSA operations) so I am not too worried.

      Seeing where Apple closed tonight I am going to be looking to be a buyer as we are moving into a major Fibonacci support area between $450 and 440 which is roughly a 50 and 61.8% retracement. The market for Apple is heavily oversold and we are also at what we believe could be a cyclic low period. Buying tomorrow between 440 and 446 or there abouts with a 5% stop should I believe be a fairly conservative buy point as the major trend in Apple according to our Trade Triangle technology is still positive.

      Tuesday, should be aninteresting day and don’t forget on Wednesday Apple makes it IOS7 available for a free download.

      Adam Hewison

      1. Thanks Adam! I will probably end up going with the 5s for same reasons you stated - true, they already do have alot of info.

        But anyway, I opened up a put option sell on the mini options 2-3 days ago while AAPL was hovering just above the 50-day and 200-day cross. I see it has since dropped below that so my trade may have been premature based on your advice here. It is an April Put option that I sold, receiving close to $400 on the sale and reducing my entry price in the event I get "put" the stock. This is one of several trade types that I learned in your coaching program that I took within the last 2 years altho with a modification of going farther out in expiration month in order to generate a large amount of cash up front.

        Thank you again Adam for the reply!!


    2. I don't know about walking into a trap Chris, but I know I won't be upgrading my phone. My iPhone4 does everything I need it to and them some. I'm not sure if there is a next giant leap in the phone arena that's going to make me chnage my mind.


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