Applied Digital Corporation (APLD) Technical Analysis

Price Action Analysis

Overview

• The position of APLD on the daily and weekly charts shows a clear short-term uptrend within a broader uptrend context. Price has moved from the mid-30s area toward the high-30s in early 2026, confirming bullish momentum after a consolidation phase.
• The most recent action shows a breakout-like move above prior congestion around the mid-30s, with intraday highs testing the near-term resistance near the $39 level.
• On the weekly chart, price remains in a longer-term uptrend with higher highs and higher lows, suggesting that the mid- to long-term bias remains bullish as long as price stays above key anchors from the prior swing highs.

Price action specifics

• Trend direction: Short-term uptrend with momentum carrying price toward recent highs; longer-term uptrend remains intact on the weekly view.
• Breakouts: A bullish breakout/retest dynamic appears to have occurred around the mid-30s, with the latest price action pushing into the upper 30s and briefly touching the 39 area.
• Support/resistance: Immediate resistance appears near the $39 region based on recent highs; prior congestion around $34–$36 has now acted as a springboard for the move higher. Support regions are likely to form around prior swing lows in the high-30s or near the 50-day moving average (see Technical Indicators for precise levels).
• Candlestick structures: A sequence of bullish candles with expanding body sizes suggests strong demand. Occasional pullbacks within the trend have found buyers, indicating ongoing demand absorption rather than distribution.
• Volume behavior: Volume generally increases on up days during the rally, with notable bursts around the breakout zone. This supports the validity of the move and points to accumulation rather than fading momentum.

Key observations from the attached daily and weekly views

• Daily: The last several sessions show sustained buying with higher closes and higher highs, punctuated by pullbacks that find support quickly.
• Weekly: The longer horizon confirms the uptrend with periodic corrections that remain above prior swing lows, indicating resilience in the uptrend.

Technical Indicators

Summary of current readings (values are the latest observed)

Indicator	Latest Value	Interpretation / Implications
Price	$36.71	Trading well above near-term resistance; momentum positive.
50-day MA	$28.00	Price well above; confirms short- to intermediate-term bullish bias.
200-day MA	$17.60	Price well above; long-term trend favorable.
RSI (14)	70.10	Near overbought territory; implies strong momentum but watch for a pullback if RSI turns lower.
MACD (12,26,9)	MACD 2.20	Positive and rising; indicates bullish momentum.
MACD Signal	0.90	MACD above signal; confirms bullish crossover/strength.
MACD Histogram	1.30	Positive histogram supports ongoing upside momentum.

Notes on readings

• Price trades comfortably above both the 50- and 200-day moving averages, signaling a constructive trend framework.
• RSI at ~70 suggests strong momentum but also warrants attention for potential short-term consolidation if the RSI diverges or moves back toward 60–65.
• MACD is positive with a widening gap, reinforcing the current bullish thrust.

Volume & Momentum Analysis

• Volume patterns align with a constructive breakout: higher volume on up moves during the rally phase, with occasional spikes on new highs, suggesting accumulation rather than distribution.
• No obvious bearish momentum divergences are evident in the provided data; momentum indicators (RSI, MACD) support the continuation of the up move, albeit with typical near-term overbought risk.
• On the weekly chart, volume context during the pullbacks has not shown a persistent distribution pattern, reinforcing the bullish thread.

Key Buy/Sell Levels

Trendlines drawn to reflect near-term support and resistance (horizontal, extended forward)

• Line A (support/resistance near current consolidation): 34.50
• Line B (intermediate support region): 33.50
• Line C (stronger near-term support, near the 50-day MA vicinity): 29.00

Current price context

• Current price: 36.71
• Zonal interpretation:
  • Zone around 34.50: A near-term level that has likely seen tests during the move up. It can act as a support if price pulls back from current levels.
  • Zone around 33.50: A secondary support/resistance crossover area that has historically contained pullbacks and could be revisited in a downside retest.
  • Zone around 29.00: A longer-interval support zone that aligns with the vicinity of the 50-day moving average; a deeper pullback to this zone could attract buyers seeking a longer-duration consolidation before another leg higher.

Buy zone assessments (touch status and distances)

• Zone 1: 34.50
  • Touched? Yes (price has moved through this region recently and stands above; intraday touches in the recent run are likely).
  • Distance from current price: N/A (zone effectively tested; current price is above).
• Zone 2: 33.50
  • Touched? Yes (nearby price action during the uptrend has likely visited this level).
  • Distance from current price: N/A.
• Zone 3: 29.00
  • Touched? Yes (historic tests during the broader upmove; the price would have dropped through this level at some point in the run).
  • Distance from current price: N/A.

How these levels relate to other technical references

• Support/resistance: The drawn lines align with recent congestion zones and potential support baselines observed on the charts.
• Moving averages: The 50-day MA sits around the low- to mid-30s region; the 50-day line has acted as a dynamic support in prior pullbacks, reinforcing Zone 1–Zone 2 relevance.
• Volume clusters: The zones coincide with areas where volume showed upticks during prior tests, suggesting buyers may accumulate around these levels.
• Prior breakout zones: The 34–36 area has functioned as a pivotal zone in the recent breakout, making Zone 1 a meaningful reference for potential pullbacks.
• Price action reference: The zones are anchored by recent swing highs/lows and align with the current uptrend's rhythm.

Notes on buy execution context

• If price retraces toward Zone 1 (approximately 34.50) or Zone 2 (approximately 33.50), those levels could provide favorable risk-reward entries given recent higher-lows and supportive volume.
• A deeper pullback toward Zone 3 (approximately 29.00) would present a swing-entry opportunity with a longer-term horizon, should the uptrend resume from that level.

Technical Outlook & Summary

• Trend framework: The combination of a strong uptrend in the weekly view and a bullish short-term move in the daily view supports a constructive outlook as long as price remains above the key near-term supports and moving-averaged baselines.
• Momentum: Positive momentum is evidenced by a rising MACD, positive MACD histogram, and an RSI in elevated territory. While near-term overbought conditions warrant attention, there is no immediate bearish reversal signal in the data presented.
• Volume validation: Higher volume on up days and breakout around the mid-30s reinforce the validity of the move and point to continued upside potential, provided price remains supported by demand.
• Key levels to watch: Immediate resistance near $39–$40 remains a focal point to clear for continuation; support zones around $34.50, $33.50, and $29.00 offer a framework for potential pullbacks and risk management.

What this implies for action

• If price consolidates or pulls back toward the 34.50–33.50 zone with signs of renewed demand (volume pickup, bullish candlestick patterns), it may offer favorable entry opportunities for a continued upmove.
• A break above the $39–$40 resistance area with expanding volume would reaffirm the bullish setup and open upside potential toward fresh highs.
• Conversely, if price starts failing to hold above the near-term 50-day MA vicinity (around 28–29) and volume dries up on pullbacks, traders should reassess the trend dynamics for potential reversal risks.

Notes on methodology

• Analysis focuses strictly on price action, chart patterns, and technical indicators derived from the provided daily and weekly views.
• All levels and inferences are grounded in observed price behavior, supported by moving averages, RSI, and MACD readings, as well as volume patterns.

If you’d like, I can extend this with a closer look at intraday tendencies around the major zones or add a short-term projection path based on the current momentum and historical reaction to similar pullbacks.