Friday, May 24, 2019
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Technical Analysis – Apple falls to 6-week lows

Apple stock falls to 6-week lows after breaking the bullish channel.

Apple stock plunged to a six-week low of 184.60 after breaking the almost five-month-old bullish channel to the downside.

The risk remains negative in the four-hour chart as the price has also dropped well below the Ichimoku cloud, while the bearish crossover between the 20- and the 50-period simple moving averages (SMA) suggests the pair will continue to trend down.

In momentum indicators, the MACD is discouraging as well, deepening in the negative zone and under its red signal line. Yet with the RSI fluctuating near its 30 oversold level, upside corrections cannot be ruled out.

Monday’s trough of 184.60 could keep the bears busy If negative momentum resumes. Beating that wall, the spotlight will next turn to the 181 level, while lower, another battle could start around the 176 level.

Alternatively, a rally above the cloud and the 23.6% Fibonacci of 204.57 of the up leg from 170.14 to 215.21 would return confidence to the five-month-old upward pattern. But on the way up, the bulls would first need to overcome the 50% and the 38.2% Fibonacci levels of 192.62 and 197.95 respectively.

In brief, Apple stock is trading bearish in the short-term time frame.


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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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