Apple, Microsoft, Exxon and Google:How To Trade The Biggest U.S. Companies In 2015

Four of the biggest companies in the U.S. — — have different outlooks heading into 2015, as the stocks performed very differently over the last year. Here's the technical outlook for these companies, along with potential buy and sell points likely to materialize in the New Year.

Apple Inc. (APPL)

Apple Inc. (AAPL) is currently in a "multiple trajectory" uptrend. Based on the daily and weekly chart, there are at least three trends offering areas of potential support on pullbacks. Based on the weekly chart, even if the price pulls back to $71, the long-term uptrend would still be in effect. That's relevant to buy and hold investors. For more active traders, there are additional points to monitor on the chart. (For more, see: Support and Resistance Basics.)

The medium-term trendline intersects near $87. That area offers a potential buying opportunity should a significant pullback develop. Declining below $87 indicates continued selling into the longer-term trendline near $71. Since April a more aggressive trendline has been in effect. It provides support near $101, offering a buying opportunity into the uptrend. A decline much below $100 and the price could be heading toward the next trendline support at $87. Long-term trend channels indicates the price recently neared its long-term target. Therefore, if the price does indeed pullback to the aforementioned entry points, the upside target is between $120 and $125. (For related reading, see: Want To Day Trade? Try Binary Options or Spread Betting.)

Microsoft Corp. (MSFT)

The technical outlook for Microsoft Corp. (MSFT) is dominated by a trend channel which commenced in 2013. The price recently touched the top of the long-term channel at $50. While the price could continue to move along the top of the channel, longer-term traders may wish to wait for a pullback to the channel bottom, between $44 and $45, before buying. The current trajectory of the price channel defines the profit target for those trades — currently near $50.50. A drop below $42 would break the long-term channel and take out the October low. That warns of further declines, potentially to major support between $35 and $33. (For related reading, see: Channeling: Charting a Path to Success.)

Exxon Mobil Corp. (XOM)

The price of Exxon Mobil Corp. (XOM) has had a choppy year, biased to the upside. In late July the price fell aggressively, and continued to decline into October, erasing much of the yearly gain. While choppy, Exxon has also been moving in a long-term upward channel. The recent pullbacks bring the price into an area of likely support, between $87 and $90. For longer-term traders this is a buying opportunity with a price target near the top of the channel at $105 to $106. Risk can be limited to $84, as a drop below that means the upward channel is broken, as well as the 2013 low. (For more, see: ExxonMobil's Massive and Reliable Money Machine.)

Google Inc. (GOOGL)

Google Inc. (GOOGL) has been forming a large triangle throughout 2014. Since the triangle spans a $100 range, trading within the triangle is possible. The breakout of the triangle will determine the next major trend though. If bullish, and expecting the long-term uptrend in the stock to continue (upside triangle breakout), considered buying near the low of the triangle, between $520 and $540, with a stop loss below $510. Exit near the top of the triangle at $590, or hold in anticipation of a breakout. If the breakout occurs, the target is $700.

Source: ChartAdvisor.com