AAPL with SMA 120

AAPL tested the 120 days moving average(SMA 120) for several time and SMA120 is acting as resistance at this time.

Looking at few days back, we see that AAPL formed a doji bar just right at the SMA 120, which mean uncertainty and it did retreat back.

Moving average is frequently used showing the average value of a stock's price over a period. Moving averages are generally used to measure identify direction of the stock and define the possible support and resistance area.

This is a good example of how SMA works. SMA 120 so far work well in AAPL, once AAPL touch SMA120 ,it tendency to go back up is high (as a support) or retreat back (as resistance).

We could define that AAPL is still in bearish market as long as it is below this SMA.

Generally, investor look at SMA 20, SMA50, SMA 200(Most professional use these). but, investor could choose to adjust the time frame for particular security since every security act differently.

SMA is just an indicator, it should only act as reference when comes to decision making.
At this case, AAPL, we look for uncertainty which reflect from candle stick to conform SMA as a valid support and resistance area.