There’s a very rare market event just around the corner that can result in triple-digit gains.
In fact, that’s exactly what has happened every time over the last 13 years.
It has to do with a very specific technical buy signal that I’ve identified in Apple (AAPL).
Today, let’s look at a weekly AAPL price chart to see what this signal looks like and how it’s unfolded previously…
The historical buy signal I’ve identified in AAPL is simple and effective.
We only need two events to take place at the same time to trigger the signal…
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When prices touch the 200-period moving average (MA – green line) on the chart.
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An oversold or near-oversold reading (below 30) in the Relative Strength Index (RSI).
This signal is a rare event. Since 2008, it’s only triggered four times (red arrows).
The average maximum gain of those four signals would’ve been an incredible 353%.
The largest individual win would’ve been buying the November 2008 signal.
So, if you cashed out on that trade in September 2012, you could’ve netted around a 750% gain.
The latest signal, which triggered in December 2018, would have netted a 384% gain if you cashed out in December 2021.
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Of course, you’ll almost never get out of a winning trade at the very top.
But even if you’re still hanging on to this latest position, you’d be up by over 254%.
And that’s why this signal is worth paying attention to.
It doesn’t come around very often. But when it does, it’s an opportunity you don’t want to miss.
I can’t guarantee we’re going to see this setup again. But the market shows it’s setting up to flash that signal once more.
Given the current selloff in AAPL, I wouldn’t be shocked if we went on to test that 200-period MA over the next few weeks.
And if the stock continues to selloff, then that should also give us the corresponding oversold signal in the RSI.
If the market does give us this signal, I’ll be sure to update you soon.
Happy trading,
Imre Gams
Analyst, Market Minute
Reader Mailbag
Do you think it’s time for AAPL to trigger a buy signal? If so, will you be buying?
Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com.