Can Apple Break Out on Its WWDC Event?
Apple continues to consolidate despite excellent earnings and strong trends. Despite its sluggish price action, there is a silver lining. Corrections tend to play out in one of two ways: through price or through time. If it's the former, the stock usually suffers a brutal correction, unraveling a huge chunk of gains in relatively quick fashion. If its the latter, the correction tends to take much longer but its far less painful. While these "corrections through time" can be frustrating because they take so long, investors dont have to endure the emotional trauma that comes with a painful price correction. Follow the live updates here. The companys Spring Loaded event wasnt enough to jumpstart the stock. Its two blowout earnings reports werent enough either. In that light, its WWDC event may not change things either. But after hitting a 52-week high almost a year ago, its only a matter of time before we get a solid move in the stock. Microsoft (MSFT) - Get Report, Alphabet (GOOGL) - Get Report, Nvidia (NVDA) - Get Report and others large-cap tech stocks have joined the party. Apple, Microsoft, Alphabet and Nvidia are holdings in Jim Cramer's Action Alerts PLUS member club. Learn more now. Trading Apple  Daily chart of Apple stock. Chart courtesy of TrendSpider.com  Much like the past few quarters, Apple stock is not giving investors much to work with despite its upcoming event. Shares are slightly lower on the day, but continue to build upon the recent pattern. That is, holding up above the 200-day moving average and uptrend support. As it stands, Apple is building out a massive ascending triangle pattern. Thats a bullish formation where uptrend support continues to guide the stock into a static level of resistance. In this case, resistance is coming into play around $135 to $138. However, over time the 200-day moving average has seemed to become less important to the bulls case. The risk is a post-event selloff that takes Apple below the 200-day and uptrend support. With the May low just below current levels at $122.25, a monthly-down rotation could be possible. There are other moving averages nearby on the larger time frames - like the 50-week and the 10-month - but if the stock experiences increased selling pressure, perhaps the first-quarter low at $116.21 will be in play. On the upside, I want to see Apple clear the 50-day moving average. If it can do that, $130-plus is doable, opening the door to that stubborn resistance area between $135 and $138, as well as the May high near $134. If by chance we get a move through $138, the highs near $145 are in play. The bottom line: Keep an eye on the 50-day moving average on the upside and $122.25 on the downside.