Technical Analysis – Apple stock slips again after hitting wall at 20-day SMA
September 13, 2023 10:27 am
Rebound attempt falters as selling pressure intensifies
Short-term outlook deteriorates
Can the stock find its feet or is or is this the start of a new bearish phase?
Apple stock has reversed lower after its latest upswing was hindered by the 20-day simple moving average (SMA) in the 180.00 region. Selling pressure has intensified today, which was predicted by the bearish doji star that formed yesterday.
The RSI has been below 50 ever since the previous rebound floundered a week ago, while the MACD has dipped back below zero and below its red signal line. Both point to a continuation of the negative bias in the coming days.
If that turns out to be the case, the price could decline further towards the 38.2% Fibonacci retracement level of the January-July uptrend at 169.79. Below that support, the 200-day SMA would come into focus at 164.15, while further down, the 50% Fibonacci of 161.05 could mark the start of a longer-term bearish phase if breached.
However, if the stock is able to bounce back, there’s likely to be strong resistance again in the 180.00-181.00 zone, which encapsulates the 20- and 100-day SMAs. Higher up, the 50-day SMA at 185.54 could block the bulls from reaching the September top of 189.78. But unless the price can surpass its all-time high of 198.08 from July 19, the risks will remain tilted to the downside.
In brief, Apple stock is at risk of printing a new lower low in the near term, potentially signalling a deepening of the correction that began during the summer.
Apple stock has reversed lower after its latest upswing was hindered by the 20-day simple moving average (SMA) in the 180.00 region. Selling pressure has intensified today, which was predicted by the bearish doji star that formed yesterday.
The RSI has been below 50 ever since the previous rebound floundered a week ago, while the MACD has dipped back below zero and below its red signal line. Both point to a continuation of the negative bias in the coming days.
If that turns out to be the case, the price could decline further towards the 38.2% Fibonacci retracement level of the January-July uptrend at 169.79. Below that support, the 200-day SMA would come into focus at 164.15, while further down, the 50% Fibonacci of 161.05 could mark the start of a longer-term bearish phase if breached.
However, if the stock is able to bounce back, there’s likely to be strong resistance again in the 180.00-181.00 zone, which encapsulates the 20- and 100-day SMAs. Higher up, the 50-day SMA at 185.54 could block the bulls from reaching the September top of 189.78. But unless the price can surpass its all-time high of 198.08 from July 19, the risks will remain tilted to the downside.
In brief, Apple stock is at risk of printing a new lower low in the near term, potentially signalling a deepening of the correction that began during the summer.
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