Apple Inc. (NASDAQ:AAPL) became the fifth and final “FAANG” stock to produce a death cross
Apple Inc.’s stock AAPL, -2.52% slumped 1.5% in midday trade Thursday, with the chart on track to produce the first bearish “death cross” in over three years. The 50-day moving average fell to $194.04, to cross below the 200-day moving average, which slipped to $194.05, a technical event that many chart watchers believe marks the spot a shorter-term decline transitions to a longer-term downtrend. Apple became the fifth and final “FAANG” stock to produce a death cross.
The last death cross appeared on Aug. 26, 2015, after the stock dropped 17.5% from its Feb. 23 peak of $133.00; it fell another 17.6% before bottoming at $90.34 on May 12, 2016. On Thursday, Apple’s stock was trading 31.7% below its Oct. 3, 2018 record close of $232.07. It has now lost 9% over the past year, while the Dow Jones Industrial Average DJIA, -1.99% has lost 6.9%.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 190.84.
The projected upper bound is: 170.37.
The projected lower bound is: 140.49.
The projected closing price is: 155.43.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 17.9785. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 8 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 28.08. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 15 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -158.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -4.060 at 156.830. Volume was 72% above average (neutral) and Bollinger Bands were 1% wider than normal.
Open High Low Close Volume___
160.400 162.110 155.300 156.830 64,772,960
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 166.00 194.00 194.04
Volatility: 35 48 34
Volume: 45,176,816 42,577,156 32,293,762
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
APPLE INC is currently 19.2% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 49 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an oversold condition.