How Apple, Microsoft, and Nvidia Shares Reverse and What to Watch Out For – Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA)
Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and NVIDIA Corporation (NASDAQ: NVDA) have all recently turned the bullish trend. An uptrend occurs when a stock hits a series of higher highs and lows on the chart.
Higher highs indicate that the bulls are in control, while higher intermittent lows indicate periods of consolidation. Traders can use moving averages to help identify an uptrend with rising moving averages in the lower frame (such as eight-day or 21-day exponential moving averages) indicating that the stock is in a strong uptrend at short-term and longer-term moving averages (such as the 200-day simple moving average) indicating a long-term uptrend.
A stock often signals when the high is reached by printing an inversion candlestick such as a doji, bearish engulf, or hanging man candlestick. Likewise, the lowest low could be reported when a doji, morning star, or hammerhead candlestick is imprinted. Additionally, the highest ups and downs often occur at resistance and support levels.
In an uptrend, the “trend is your friend” until it isn’t, and in an uptrend there are ways for both bullish and bearish traders to participate in the action:
- Bullish traders who already hold a position in a stock can be confident that the uptrend will continue unless the stock hits a low. Traders looking to take a position in a stock in an uptrend can enter and usually find the safest entry on the lower higher.
- Bearish traders can enter the trade on the high and exit on the pullback. These traders can also enter when the uptrend breaks and the stock hits a lower low, indicating that a reversal to a downtrend may be in the charts.
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The Apple chart: Apple hit a high of $ 147.47 on Friday and regained the eight-day exponential moving average (EMA) as support. The stock will need to hit a lower high in the future as it continues its uptrend. Apple has upper resistance at $ 147.79 and $ 150 while it has lower support at $ 144.53 and $ 141.37.
The Microsoft chart: Microsoft hit a high on Thursday at the $ 300.90 level and Friday may have hit the low as high at $ 296.93 when it printed a hammer candlestick. Microsoft has resistance above the $ 301.50 level and above its all-time August 20-24 highs of $ 305.84. The stock has lower support at $ 298.20 and $ 296.93.
The NVIDIA graphics: Nvidia hit a high of $ 225.35 on Thursday and possibly hit the low on Friday when it consolidated at $ 218.61 and printed a doji reversal candlestick. Nvidia’s only resistance above is at its all-time high of $ 230.43, and it has support below at the $ 219.77 and $ 208.75 levels.