In 2023, Apple stock is up 38%, outperforming the S&P 500’s rise of 16.7% and the 31% surge of the Nasdaq. However, slower iPhone demand in Apple’s latest quarterly report sent the stock sharply lower after the company reported earnings.
With the up day on August 14, 2023, many traders are wondering if it’s time to go long Apple stock.
This is where a Heikin-Ashi chart comes in handy. A Heikin-Ashi chart is a type of candlestick chart that is used to display price movements in a more simplified and smoothed manner. “Heikin” means average or balance in Japanese, and “Ashi” means bar or candle. This charting technique averages the open, high, low, and close prices of each candlestick to create a new set of values for plotting the chart. As a result, Heikin-Ashi charts are less noisy and provide a clearer representation of trend direction and momentum. The color of the candles in a Heikin-Ashi chart also differs from traditional candlestick charts, where green or white candles represent bullish movements and red or black candles represent bearish movements.
AAPL stock has not yet formed a green candlestick for two days in a row which would be a buy signal for the stock. Further, the MACD’s histogram bars have not yet turned up which would be another signal suggesting that the downward move in AAPL stock was near an end. In summary, it’s still too early to take a long position in AAPL stock in order to profit from a swing move higher.
