Technical Analysis – Apple stock held down by 200-day SMA
November 1, 2023 4:27 pm
Apple stock battles with 200-day SMA ahead of Q3 earnings
Dropped to its lowest since May before recouping some losses
Oscillators improve but still in negative zone
Apple’s share has been in a clear downtrend after recording a fresh all-time high in mid-July, dropping below its 200-day simple moving average (SMA) for the first time since March. Although the price managed to halt its retreat at the six-month bottom of 165.50, momentum indicators suggest that the bulls remain on the sidelines.
If the reported financials tomorrow surprise to the upside, the bulls could attack 196.56, which is the 23.6% Fibonacci retracement of the 124.02-198.08 upleg. Violating that zone, the price could advance towards the September peak of 189.90. A break above that hurdle may pave the way for the record high of 198.08.
Alternatively, bearish pressures could send the stock to initially test the 38.2% Fibo of 169.79 ahead of the six-month low of 165.50. Sliding beneath that floor, the share price could retreat towards 50.0% Fibo of 161.05. Even lower, the 61.8% Fibo of 152.31 could provide downside protection.
In brief, despite the latest bounce off its six-month low, Apple’s stock remains suppressed by the 200-day SMA. Can the Q3 earnings report on Thursday trigger some volatility?
Apple stock battles with 200-day SMA ahead of Q3 earnings
Dropped to its lowest since May before recouping some losses
Oscillators improve but still in negative zone
Apple’s share has been in a clear downtrend after recording a fresh all-time high in mid-July, dropping below its 200-day simple moving average (SMA) for the first time since March. Although the price managed to halt its retreat at the six-month bottom of 165.50, momentum indicators suggest that the bulls remain on the sidelines.
If the reported financials tomorrow surprise to the upside, the bulls could attack 196.56, which is the 23.6% Fibonacci retracement of the 124.02-198.08 upleg. Violating that zone, the price could advance towards the September peak of 189.90. A break above that hurdle may pave the way for the record high of 198.08.
Alternatively, bearish pressures could send the stock to initially test the 38.2% Fibo of 169.79 ahead of the six-month low of 165.50. Sliding beneath that floor, the share price could retreat towards 50.0% Fibo of 161.05. Even lower, the 61.8% Fibo of 152.31 could provide downside protection.
In brief, despite the latest bounce off its six-month low, Apple’s stock remains suppressed by the 200-day SMA. Can the Q3 earnings report on Thursday trigger some volatility?
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