A Fresh Look at Apple as Rapid Price Moves are Becoming Routine


With additional tariffs delayed from Sept. 1 to Dec. 15, which companies are the winners? During his Mad Money program Tuesday night, Jim Cramer offered up his list of stocks that can now be bought into any market weakness.

The obvious winner is Apple (AAPL) , Cramer said, as the company makes both cell phones and laptops and is headed into the fall new product cycle. Tariffs would have hurt Apple but that bullet has now been delayed if not entirely dodged.

Let’s check out the charts and indicators of AAPL.

In this daily bar chart of AAPL, below, we can see that probes into the $210-$220 area have been rejected. Prices are testing the rising 50-day moving average line. The slower-to-react 200-day line has a negative slope.

The daily On-Balance-Volume (OBV) line has been neutral since early June and a bearish divergence when compared to prices rallying in the same period.

The Moving Average Convergence Divergence (MACD) oscillator has turned down and is poised to test the zero line and perhaps generate a sell signal.

In this weekly bar chart of AAPL, below, we can see a wide trading range the past 12 months for this popular stock. The slope of the 40-week moving average line is negative but prices are above the line.

The weekly OBV line has rolled over the past four months and suggests a shift to more aggressive selling.

The MACD oscillator has narrowed recently and could cross to the downside for a take profits sell signal.

In this Point and Figure chart of AAPL, below, we can see a potential upside price target of $247 but a decline to $193.55 is likely to weaken this chart.

Bottom line strategy: With the broad market acting so weak since the middle of July it is hard to be really bullish on AAPL despite its long history of gains. The most prudent advice I can suggest on AAPL is to protect long positions with a stop below $193.50.

(Apple is a holding in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL? Learn more now.)

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