Apple Stock Surges 13% in Three Days as Technical Indicators Flash Bullish Signals

Candlestick Theory
Apple's recent price action displays a robust bullish momentum, with the latest three sessions forming consecutive white candles on increasing ranges. The August 6–8 sequence (closing at $213.25, $220.03, and $229.35) resembles a bullish continuation pattern, characterized by higher highs/lows and extended upper wicks indicating absorption of selling pressure near $231. Immediate resistance is established at the August 8 high of $231, while support emerges near the August 7 low of $216.58. A decisive close above $231 would confirm bullish conviction, whereas failure to hold $216.58 may signal profit-taking.
Moving Average Theory
The 50-day, 100-day, and 200-day moving averages exhibit a bullish alignment, with shorter averages positioned above longer ones—a classic uptrend configuration. Apple’s current close of $229.35 trades comfortably above all three averages, reinforcing the bullish bias. The 50-day MA (approximately $215) has recently acted as dynamic support during pullbacks (e.g., July 30–31 dip to $207–$209), while the 200-day MA (near $195) anchors the longer-term uptrend. A sustained move above the 50-day MA after the August 6 rebound underscores trend strength, though monitoring for potential mean-reversion toward $215 remains prudent.
MACD & KDJ Indicators
The MACD histogram (12/26/9 settings) shows accelerating bullish momentum, with the signal line crossing above the baseline on August 6—supported by rising volume. Concurrently, the KDJ oscillator (14-period) exited oversold territory (<30) in early August, with the %K line (84) and %D line (78) converging near overbought territory (>80). This dual momentum signal suggests near-term exhaustion risk, though the MACD’s upward trajectory implies continuation potential. Divergence is absent, as both oscillators align with the price surge.
Bollinger Bands
Volatility expanded sharply during Apple’s 13% three-day rally, with the price breaking above the upper Bollinger Band (20-day SMA ≈$218, 2σ) on August 6–8—historically indicative of strong trend impulses. Bandwidth contraction preceded this move (July 22–August 5), signaling a volatility squeeze. The current extension outside the upper band may foreshadow consolidation, but sustained closes above $225 would validate strength. Near-term support rests at the mid-Bollinger level ($218).
Volume-Price Relationship
Volume surged during the rally—111.4M shares traded on August 8, exceeding the 30-day average—confirming broad participation. Notably, the August 6–8 advance coincided with progressively higher volume, validating breakout legitimacy. Preceding weakness (July 31 to August 5) featured subdued volume, suggesting limited conviction in pullbacks. The volume profile highlights $210–$216 as a high-density support zone, where accumulation occurred during late July consolidations.
Relative Strength Index (RSI)
The 14-day RSI (current reading ~78) entered overbought territory, historically preceding short-term consolidations (e.g., May 2025 peak at RSI 81 preceded a 9% correction). However, overbought RSI levels can persist during strong trends. Combined with elevated volume and MACD confirmation, this may imply near-term consolidation rather than reversal. Traders should monitor for divergence if prices make new highs without RSI confirmation.
Fibonacci Retracement
Applying Fibonacci to Apple’s March 21 swing high ($258.70) and April 14 trough ($190.42) reveals confluence near current levels. The 61.8% retracement ($231.50) aligns with August 8’s intraday high, establishing immediate resistance. The 50% level ($224.60) now acts as support, bolstered by the August 7 close. A breach above $231.50 could catalyze movement toward the 78.6% retracement ($244). Conversely, failure to hold $224.60 may trigger retests of the 38.2% level ($217.50).
Confluence and Caveats
Multiple indicators corroborate Apple’s bullish bias: moving average alignment, volume-backed breakout, and MACD momentum convergence. Key resistance at $231 (Fibonacci 61.8% + candlestick high) represents a critical test—breaching this level may extend gains toward $244. Divergence is minimal, though RSI overbought conditions and Bollinger Band expansion warrant vigilance for profit-taking near $231. Downside risks include failure to hold $216.58 (candlestick support) or breakdowns below the 50-day MA ($215). The current technical structure favors continuation, albeit with near-term exhaustion signals suggesting potential consolidation.