Technical Analysis – Apple stock feels the virus pain too; could extend losses below 234.00
March 19, 2020 4:26 pm
Apple’s stock has been trending downwards since the peak at an all-time high of 327.70, losing as much as 24%.
On Wednesday the company unveiled new products but the virus situation kept traders cautious, with the stock unable to rebound above the 200-day simple moving average (SMA).
In the momentum indicators, the RSI and the MACD have yet to show signs of improvement in the bearish area, while the red Tenkan-sen line keeps decelerating, all hinting that the negative phase is not over yet.
Within a striking distance, the 50% Fibonacci of the 141.93-327.70 upleg at 234.10 could prove a crucial support area as this is also where the market topped in 2018. Failure to rebound at this point, could generate additional losses towards the 61.8% Fibonacci of 212.00 if the former resistance zone near 222.00 appears a weak obstacle this time.Lower, the bears should overcome the 195.00-200.00 region to extend the decline.
On the upside, the 260.00 level, which is slightly above the 38.2% Fibonacci seems to be a hurdle at the moment. Should the bulls win the battle, resistance could run up to 277.20 and near the 20-day SMA. Breaking the latter and more importantly the 23.6% Fibonacci of 283.52, the way would open towards the 300.00 level and the 50-day SMA, where any close higher could signal that the market’s long-term uptrend is still in play.
Yet, with the 20-day SMA increasing distance below the 50-day SMA, the downward direction may not reverse in the short-term.
Summarizing, Apple’s stock is expected to resume negative momentum below 234.10, simultaneously putting the long-term uptrend in doubt.
Apple’s stock has been trending downwards since the peak at an all-time high of 327.70, losing as much as 24%.
On Wednesday the company unveiled new products but the virus situation kept traders cautious, with the stock unable to rebound above the 200-day simple moving average (SMA).
In the momentum indicators, the RSI and the MACD have yet to show signs of improvement in the bearish area, while the red Tenkan-sen line keeps decelerating, all hinting that the negative phase is not over yet.
Within a striking distance, the 50% Fibonacci of the 141.93-327.70 upleg at 234.10 could prove a crucial support area as this is also where the market topped in 2018. Failure to rebound at this point, could generate additional losses towards the 61.8% Fibonacci of 212.00 if the former resistance zone near 222.00 appears a weak obstacle this time.Lower, the bears should overcome the 195.00-200.00 region to extend the decline.
On the upside, the 260.00 level, which is slightly above the 38.2% Fibonacci seems to be a hurdle at the moment. Should the bulls win the battle, resistance could run up to 277.20 and near the 20-day SMA. Breaking the latter and more importantly the 23.6% Fibonacci of 283.52, the way would open towards the 300.00 level and the 50-day SMA, where any close higher could signal that the market’s long-term uptrend is still in play.
Yet, with the 20-day SMA increasing distance below the 50-day SMA, the downward direction may not reverse in the short-term.
Summarizing, Apple’s stock is expected to resume negative momentum below 234.10, simultaneously putting the long-term uptrend in doubt.
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