Apple Inc (AAPL) closed Wednesday, Jan. 6, at $126.60, down 4.6% so far in 2021. The stock set its all-time intraday high of $138.79 on Dec. 29 and is down 8.8% from this high. Apple is also in a 澳洲幸运5官方开奖结果体彩网:bull market over the past 52 weeks. It's 🍌up 138.2% from its March 23, 2020, low of $53.15. The stock has been trading back and forth around its quarterly pivot at $129.97 fo🐓r each day of January so far.

Apple was founded on April 1, 1976, and is based in Cupertino, California. The company develops and offers computer software, online services, and consumer devices such as the ever-popular iPhone. Recently, there have been discussions about the building of 澳洲幸运5官方开奖结果体彩网:an Apple automobile.

The tech giant has beaten 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) estimates in 16 consecutive quarters. The stock is not cheap, as its 澳洲幸运5官方开奖结果体彩网:P/E ratio is elevated at 39.7 with a 澳洲幸运5官方开奖结果体彩网:dividend yield of 0.63%, according to Macrotrends. Here's how to trade Apple stock using daily a💧nd weekly charts.

The Daily Chart for Apple

The daily chart for Apple shows that the stock has been above a 澳洲幸运5官方开奖结果体彩网:golden cross for more than 52 weeks. Notice that the stock is well above its 50-day and 200-day 澳洲幸运5官方开奖结果体彩网:simple moving averages (SMAs), now༒ at $122.12 and $101.98, respectively.

The stock was a buy between March 16 and April 6, when it traded back and forth around its 200-day SMA, then at $62.84. The stock rallied to a high of $137.98 on Sept. 2 and then declined to $103.10 on Sept. 21. The rebound from this level tracked the stock to its all-time intraday high of $138.🍨79 on Dec. 29.

During the first full week of 2021, Apple stock has been trading back and forth around its quarterly pivot at $129.97, which is the highest of three horizontal lines. Above th🤪e chart is its monthly risky level at $152.12. The downside risk is to the lower two horizontal lines. The semiannual value level is the middle horizontal line at $114.04. The lower line is the annual value level🙈 at $97.31.

The Weekly Chart for Apple

The weekly chart for Apple is positive, with the stock above its five-week modified moving average of $125.50. The stock is well above its 200-week SMA, or 澳洲幸运5官方开奖结果体彩网:reversion to the mean, at $59.84.

The 12 x 3 x 3 weekly slow 澳洲幸运5官方开奖结果体彩网:stochastic reading is projected to rise to 79.37 this week, up from 78.37 on Jan. 1. It is nearly 澳洲幸运5官方开奖结果体彩网:overbought, with the overbought threshold at 80.00 on a scal𓃲e of 00.00 to 100.00.

Trading Strategy

Buy Apple stock on weakness to the semiannual and annual value levels at $114.04 and $97.31, and reduce hꦰoldings on strength to its monthly risky level at $152.12.

How to Use My Value Levels and Risky Levels

The closes on Dec. 31, 2020, were inputs to my proprietary analytics and resulted in new monthly, quarterly, semiannual, and annual levels. Each uses the last nine closes in 🍌these time horizons. New weekly levels are calculated after the end oꦚf each week. New monthly levels occur after the close of each month. New quarterly levels occur at the end of each quarter. Semiannual levels are updated at mid-year. Annual levels are in play all year long.

My theory is that nine years of 澳洲幸运5官方开奖结果体彩网:volatility between closes are enough to assume that all possible bullish or bearish events for the stock are factored in. To capture share price volatility, investors should buy shares on weakness to a value level ✱and reduce h🦋oldings on strength to a risky level. A pivot is a value level or risky level that was violated within its time horizon. Pivots act as magnets that have a high probability of being tested again before their time horizon expires.

How to Use 12 x 3☂ x 3 Weekly Slow Stochas♈tic Readings

My choice of using 12 x 3 x 3 weekly slow stochastic readings was based upon 澳洲幸运5官方开奖结果体彩网:backtesting many methods of reading share-price momentum with the objective of finding the combination that resulted in the fewest false signals. I did this following the stock market crash of 1987, so I have been happy with the results for more thanꦡ 30 years.

The stochastic reading covers the last 12 weeks of highs, lows, and 🃏closes for the stock. There is a raw calculation of the differences between the highest high and lowest low versus the closes. These levels are modified to a fast reading and a slow reading, and I found that the slow reading worked the best.

The stochastic reading scales between 00.00 and 100.00, with readings above 80.00 considered overbought and readings below 20.00 considered oversold. A reading above 90.00 is considered an inflating parabolic bubble formation, which is typically followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered too cheap to ignore, which is typical༺ly followed by gains of🌊 10% to 20% over the next three to five months.

Disclosure: The author has no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours.