Stock Of The Day: Is Apple About To Bounce?

Shares of Apple Inc. (NASDAQ:AAPL) are trading sideways on Friday. The recent downtrend of our “Stock of the Day” may have ended. The shares are oversold and at support.

As shown in the chart below, the $258 level has been significant for Apple for more than a year. It was resistance, and now it is support.

In late 2024, the stock was in an uptrend. When it reached approximately $258, sellers overpowered buyers, and a selloff followed.

When this happened, many of the people who bought shares at around $258 came to think their decision to do so was a mistake.

They decided to hold their losing positions. However, they also decided that, if they could do so, they would exit at breakeven.

As a result, when Apple rallied back to $258 in September, these remorseful buyers placed sell orders. There was a large quantity of these orders. It was enough to create resistance.

In late October, this resistance broke, and the price moved higher.

When this occurred, many of the people who sold shares at around $258 believed their decision was a mistake.

Many of these remorseful sellers decided that, if they could, they would buy their shares back at the same price at which they were sold. When the stock dropped back to approximately $258 yesterday, these remorseful sellers entered buy orders.

The large number of these orders created support at the level.

Apple is also oversold. The Commodity Channel Index (CCI) is on the lower part of the chart. If the blue line is below the lower red horizontal line, it indicates oversold conditions. As you can see, that's the case now.

The dynamics of being oversold while at support can be bullish. Apple may be about to head higher.

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