Stock In Review: Apple - (AAPL)

Apple Inc - NASDAQ: (AAPL) the largest market cap company in the world with a market cap of just over USD $580 billion, has recently been in the financial news headlines for claims it has underpaid taxes within the European Union (EU) region. The EU has ordered Ireland on its behalf to collect from Apple back taxes of EUR $13 Billion plus interest payments for underpaying corporate taxes over several years. However the ruling may not stand as the Ireland Government is debating on whether to enforce the EU's decision.

Overnight Apple released to the world the latest updates on the iPhone, iPhone accessories and the new Apple watch, so I thought today would be a perfect time to review Apple's chart in 'Stock In Review'.

Looking at the long term chart below you can see that for Apple shareholders who have owned the stock over the last 7.5 years have been rewarded with a close to 10 fold share price appreciation from a low of around $11 (share split adjusted) that was reached at the depths of the financial crisis in Jan 2009 to the current price in Sep 2016 of $108.36.

The long term monthly chart of Apple below shows an impressive uptrend that has continued since making the lows in 2009,  with the price comfortably above its trend line and moving averages.

On a weekly chart Apple overall picture looks a little different, as Apple had been in a downtrend after breaking its strong uptrend in the first week of Aug 2015,  shown in the chart below at around $115 a share. Once it broke the downtrend it continued to fall for the next 12 months.

Interestingly Apple broke its down trend in the first week of August 2016 one year to the date of its trend turning down.

 Zooming in on a daily chart, you can see that once Apple formed a strong support level around $92.50 a share on 4 occasions (see chart below), Apple was able to reverse  and break its downtrend channel.

After breaking out of its downtrend Apple experienced a short pullback in price before starting to rise again which is a bullish sign for Apple.

So overall even though Apple has some tax issues to sort out with the EU over the coming months, the market doesn't seem to mind, or the market doesn't believe it will be forced to pay the large tax bill ordered by the EU.

Disclaimer: This post was for educational purposes only and all the information contained within this post is not to be considered as advice or a recommendation of any kind. If you require advice or assistance please seek a licensed professional who can provide those services.

Sources:
bbc.com
utv.ie
zerohedge.com