Buy Apple when RSI hits 50 and MA 10 converges with MA 20

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Apple Inc. (NASDAQ:AAPL) is a premier stock on Wall Street. The company’s strong fundamentals are not in doubt. The strength is reflected in the solid upward trend that AAPL maintained over the years.

In periods of uncertainty, like the prevailing period, investors would flock to the stock which represents a good store and growth of value. However, investors need to learn signs of when it is best to take a position in the stock.

AAPL buy signals triggered

Source –  TradingView

Analysis of AAPL shows that for the longest time, the trend in share price reverses as soon as MA 10 touches MA 20. The two moving averages have no interaction with MA 50 whatsoever. The analysis also shows that the trend reverses to bullish as soon as the RSI touches 50. There is no time when the RSI dropped below 50. 

The observed features of Apple’s stock price as described above are an indication of the signals that investors should look for if interested in the stock. Currently, MA 10 at $166 is almost interacting with MA 20 at $164. This also shows the short-term increasing trend. The RSI is at 52 hence close to the RSI 50 indicator. Based on these signals, AAPL at a price of $163 is a strong buy.

Summary

AAPL is a premier stock in bullish markets as well as bearish markets. The company’s strong fundamentals and strong share price gains are reasons to buy the stock. Investors should look out for the RSI at 50 and interaction between MA 10 and MA 20 as the buy signals.

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