Technical Analysis – Apple stock holds below 50-day SMA; bearish correction mode in short-term
November 1, 2018 3:26 pm
The Apple stock price turned lower after the pullback on the all-time high of 233.50 and has been developing below the 50-day simple moving average (SMA) since the middle of the preceding week, painting a bearish picture in the short-term. The RSI is flattening near the neutral threshold of 50, while the MACD oscillator is ready for a bullish crossover with the trigger line in the negative zone.
Further declines could find immediate support at the 23.6% Fibonacci retracement level of the upleg from 149.89 to 233.50, around 213.75. If the latter fails to halt bearish movements, the next target could be found at the 206.50 barrier, taken from the latest lows. Below this level, the 38.2% Fibonacci of 201.60 could be another support in focus for traders.
On the upside, the price may retest the 50-day SMA before it hits the 224.00 resistance level. More gains could challenge the all-time high of 233.50, achieved on October 3.
Turning to the long-term view, the outlook is strongly bullish as it still stands above the nine-month ascending trend line, however, in the short-term the stock index stands in a bearish correction mode.
The Apple stock price turned lower after the pullback on the all-time high of 233.50 and has been developing below the 50-day simple moving average (SMA) since the middle of the preceding week, painting a bearish picture in the short-term. The RSI is flattening near the neutral threshold of 50, while the MACD oscillator is ready for a bullish crossover with the trigger line in the negative zone.
Further declines could find immediate support at the 23.6% Fibonacci retracement level of the upleg from 149.89 to 233.50, around 213.75. If the latter fails to halt bearish movements, the next target could be found at the 206.50 barrier, taken from the latest lows. Below this level, the 38.2% Fibonacci of 201.60 could be another support in focus for traders.
On the upside, the price may retest the 50-day SMA before it hits the 224.00 resistance level. More gains could challenge the all-time high of 233.50, achieved on October 3.
Turning to the long-term view, the outlook is strongly bullish as it still stands above the nine-month ascending trend line, however, in the short-term the stock index stands in a bearish correction mode.
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