Followers | 679 |
Posts | 141047 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Tuesday, December 11, 2018 8:08:47 AM
By: Schaeffer's Investment Research | December 11, 2018
The 64-week moving average for AAPL just switched roles to act as resistance
As Apple stock slumps deeper into its own personal bear market, bulls should proceed with caution
It wasn't that long ago that Wall Street was celebrating Apple's (AAPL) record-setting incursion into trillion-dollar market cap territory -- and so the spate of recent headlines (perhaps colored with the faintest tint of Schadenfreude?) crowing that Microsoft (MSFT) had now surpassed its cooler, upscale rival in terms of total market value must have seemed rather abrupt to the ever-present contingent of AAPL faithful. In fact, as of this writing, Apple's market cap of $767.34 billion is smaller than that of both Microsoft ($800.55 billion) and Amazon.com (AMZN) ($784.12 billion), though still ahead of Alphabet (GOOGL), at $711.38 billion.
As some quick mental math will likely tell you, that sharply reduced AAPL market cap is the result of the vaunted Dow stock stumbling headfirst into its very own bear market. From its Oct. 3 all-time intraday high of $233.47, the stock has lost a total of 27.8%, as of Friday's close. In fact, a daily chart shows that AAPL gapped dramatically into bear-market status following its initial close below the "official" $186.78 threshold on Nov. 19. Since then, a rebound attempt by the equity has been rejected near the site of the pre-gap lows, with the Dec. 3 high ringing in at $184.94.
But our focus in today's column is on Apple's weekly chart, and specifically on the significance of its 64-week moving average -- a trendline that's chronologically analogous to one of our favored "under-the-radar" daily moving averages, the 320-day. Per the accompanying chart, the 64-week moving average briefly acted as resistance back in the third quarter of 2016, but then AAPL successfully tested support at this trendline in the fourth quarter of that year ahead of its lengthy 2017-2018 run up the charts.
Following that breakout roughly two years ago, support at the 64-week wasn't tested again until early in 2018, amid the bout of broad-market volatility that shook up the stock market at the start of February. At the time, the 64-week moving average was crossing through the round $150 region, and these two technical levels collaborated to create a firm layer of support to contain Apple's sell-off. (Which, not insignificantly, coincided with AAPL's first breach of its 32-week moving average, in blue, since the third quarter of 2016.) Later, an April drawdown took AAPL close to its 64-week moving average, but not quite close enough for a formal test.
Then, on Nov. 20, AAPL gapped lower on iPhone demand concerns, and opened starkly below its 320-day trendline in the process. That Friday, in the shortened post-Thanksgiving session, the stock collected a weekly finish beneath its 64-week moving average for the first time in more than two years.
Last Monday, a broad-based rally swept Apple stock above its 320-day moving average by the close, after the stock had just closed its second consecutive Friday below its 64-week trendline. But the gains last week were short-lived, for AAPL and for the rest of the equities market. And after peaking almost squarely at the site of its 64-week moving average, the world's one-time trillion-dollar wonder closed the week 5.7% lower, and just below the round $170 level.
AAPL could very well find some traction around here in the short term, as $169 is home to its year-to-date breakeven mark, and the September 2017 highs around $165 also provided a floor earlier this year. But the speed and strength with which the 64-week moving average emerged last week as a stiff layer of resistance should be cause for concern, as Apple -- until very recently, the sector-leading stock of the market-leading sector -- appears set for, at the very least, a continued period of volatile, choppy price action.
Read More »»»
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
Recent AAPL News
- Jobs Data, Apple Earnings Contribute To Extended Rally On Wall Street • IH Market News • 05/03/2024 08:25:49 PM
- Jobs Data, Apple Earnings May Lead To Extended Rally On Wall Street • IH Market News • 05/03/2024 01:09:33 PM
- Apple reports second quarter results • Business Wire • 05/02/2024 08:30:00 PM
- U.S. Stocks Rally Amid Easing Worries About Possible Rate Hike • IH Market News • 05/02/2024 08:20:39 PM
- Alphabet CEO’s Billion-Dollar Wealth, Microsoft’s $1.7B Indonesia Investment, and More News • IH Market News • 04/30/2024 11:58:40 AM
- Philips Stocks Soar 47% Following US Deal, Tesla Bolsters Presence in China, and More News • IH Market News • 04/29/2024 11:11:24 AM
- BHP Bids $38.8 Billion for Anglo American; Biden Unveils Historic Micron Technology Deal, and More News • IH Market News • 04/25/2024 11:48:40 AM
- Coca-Cola and Microsoft Sign Billion-Dollar Agreement, Apple Event Set for May 7, and More News • IH Market News • 04/24/2024 11:28:02 AM
- AKT Token Skyrockets on Upbit Listing, IBIT Holds Strong in Top 10 ETFs, and More Crypto News • IH Market News • 04/23/2024 04:34:08 PM
- Apple Loses Market Share in China, GM Surges in Pre-Market Following Upward Revisions for 2024 Projections, and More News • IH Market News • 04/23/2024 11:25:34 AM
- Li Auto Stock Drops 7.3% Amid Tesla Price Cuts, Salesforce Retreats from Informatica Deal, and Other Market Updates • IH Market News • 04/22/2024 12:09:21 PM
- Paramount’s Shares Surge Following Sony and Apollo’s Joint Bid; ISS Backs Berkshire Hathaway Director Re-election, and More • IH Market News • 04/19/2024 11:31:22 AM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Ericsson Soars with 66% Net Profit Growth; Live Nation Under Antitrust Scrutiny in US, and More News • IH Market News • 04/16/2024 11:18:19 AM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- Paramount Global Board Shrinks, Morgan Stanley Faces Regulatory Probe, and More News • IH Market News • 04/12/2024 11:05:29 AM
- Costco Increases Dividend by 14%, Meta Introduces ‘Artemis’ AI Chip, and More News • IH Market News • 04/11/2024 11:24:54 AM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
- Boeing Down in Pre-Market Due to CEO Developments and Denver Incident; MicroStrategy Surges 11% with BTC Spike, and More • IH Market News • 04/08/2024 11:17:49 AM
- Apple Terminates 614 Employees, Disney Unveils June Crackdown on Password Sharing, and More Updates • IH Market News • 04/05/2024 11:38:57 AM
- Exxon Mobil Forecasts Earnings Decline, Twilio Seeks Board Tenure Changes, and More News • IH Market News • 04/04/2024 11:30:20 AM
- Cal-Maine Surges on Strong Quarterly Performance, Taiwan Earthquake Disrupts Tech Supply Chain, and More • IH Market News • 04/03/2024 11:12:20 AM
- GameStop Shares Tumble 20% in Pre-Market Trading Amid Revenue Decline, Direct Digital Plummets 42%, and More News • IH Market News • 03/27/2024 10:54:47 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM