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Invest Into Apple (AAPL) With Over 50% Upside Based On Point & Figures Chart

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In order to predict the upside of Apple, it is essential to conduct the Wyckoff method for phase analysis to judge if the price structure is ready to enter into the markup phase. Else, one could be buying in the trading range and get trapped for months if not years. Next, Point and Figures (P&F) chart will be adopted for price target projection in Apple.

Wyckoff Method – Phase Analysis

Since the swing low formed in March 2020, Apple had an impressive rally and ended with a parabolic run up with a buying climax (BC) on September 2020 followed by a change of character or an automatic reaction (AR), which defined an up-sloping trading range subsequently. Refer to the chart below:

The uptrend of Apple since last year March has been stopped by the change of character down wave. It has been consolidating within the up-sloping range until the breakout on November 2021, which is part of the sign of strength (SOS) rally.

The sign of strength rally is the final test before the markup phase. In mid of December 2021, a pullback with increasing volume as a backup action (BU) could potentially stop the SOS rally for now and into a trading range between 168-182. The increasing of volume suggested presence of supply and is likely required to be tested.

It is essential for the SOS rally to be successful without failing back below the range. Should Apple commit above 160-167 while the backup action is unfolding, the bullish structure is intact.

There are a lot of nuances in interpreting the supply and demand from the volume together with the price action. Feel free to watch the YouTube video find out how to use price volume analysis on the top 10 stocks of S&P 500.

Apart from using the Wyckoff methods to analyze stocks, monitoring the market insights such as the market breadth is a must in order to understand the overall health of the stock market as a top-down approach.

Click here to visit TradePrecise.com to get additional market insights in email for free.

After using the Wyckoff methods in terms of the phase analysis and the price volume analysis, we know that Apple’s accumulation structure is near completion. Now is the time to use Point and Figure chart for price target projection.

Apple (AAPL) Price Prediction with Point and Figures Chart

The Point and Figure chart is a powerful tool for price target projection, which it measures if there is enough “fuel in the tank” for the stock price to rally up, based on the Wyckoff’s law – Cause and Effect.

The causes built within the accumulation structure is to be reflected in the price as the effects, which can be illustrated in the Apple’s Point and Figure chart below:

The accumulation structure is divided into 4 segments where we can use each segment to project different price target for Apple. The first target of 159 has been hit, followed by 192 and 216. A maximum target of 282 can be projected based on an aggressive count.

For the Point and Figures price target projection to remain valid, price monitoring for Apple is still required for example, AAPL needs to commit above 160 for the accumulation structure to stay intact.

Should the bullish structure for Apple retain, there is still 57% upside ahead based on the maximum price target of 282.

This article was originally posted on FX Empire

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