Apple's stock rallies, but 'Bollinger Bands' are at narrowest point in 8 months
Shares of Apple Inc. rallied 1.0% in afternoon trade Friday, while a technical indicator called "Bollinger Bands" indicates they are experiencing the quietest short-term trading environment in eight months. Bollinger Bands is a chart tool that helps measure relative volatility by using a moving average (typically over 20 sessions) and charting upper and lower boundary lines that are two standard deviations away from that moving average. On Friday, the boundary lines are just $8.47 apart, narrowest gap since it was at $8.42 on June 6, 2018. Back then, the stock pulled back by as much as 6.1% over the next few weeks before resuming its uptrend. The time before that, when the gap was just $8.29 on Jan. 16, 2018, the stock bottomed 12% lower about three weeks later; before that, when the gap was $7.72 on Dec. 15, the stock was 0.6% higher three weeks later. Apple's stock is little changed over the past 12 months, while the Dow Jones Industrial Average has gained 5.8%.
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