Shares of Apple (AAPL) are going to make what I call a “Volatility Surge” in the next few days, providing you with the opportunity to ride the stock from $195 to $210 before the end of the year. These are the type of moves that traders comb through the charts for, I’ll walk you through it in less than two minutes.
Let’s go!
Here’s What’s Happening: Since mid-November, Apple has been trading in a tight 2% trading range, as the stock took a break following an 18% rally from its October lows. That consolidation has dropped my daily volatility indicator to levels only seen ahead of a surge in price movement. Think of the last three weeks of sideways activity as the “quiet before the storm.”
These type of volatility surges require a “trigger,” and in this case, Apple’s stock price is sitting a mere $0.70 below its trigger price of $195. As a matter of fact, AAPL traded with a high of $195 on Thursday, but closed lower giving you another chance to participate in the anticipated move.
How Do I Know About this Move? Look, I’m a numbers nerd and the market is a great place for the numbers to tell a story. Here’s the story.
The data shows that Apple’s stock has seen once before in 2023. In May, shares drew the same pattern ahead of a 10% rally in shares. We’re talking the same pattern here!
Check out the chart below…
Here’s the Bottom Line: There has been a lot of doubt towards AAPL over the last few months after the last earnings report. This technical breakout will initiate a good old fashioned “FOMO” rally as we head into the end of the year, as investors rush to add the basic portfolio staple back to their accounts.
I’m targeting a move to $210 that is likely to lead even higher into January.
Full disclosure, I am long the stock and call options.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.