Apple Inc. (NASDAQ:AAPL) dropped 2.2% in morning trade Thursday
Shares of Apple Inc. AAPL, -1.66% dropped 2.2% in morning trade Thursday to pace the Dow Jones Industrial Average’s DJIA, +0.08% decliners, as they extended their pullback from a record high amid broad weakness in the technology sector. The stock’s price decline shaved about 33 points off the Dow’s price, which was down 81 points.
After Tuesday’s record close of $228.36, the stock rallied as much as 0.6% to an all-time intraday high of $229.67 on Wednesday after Morgan Stanley raised its price target, before reversing course to close down 0.7% to snap a nine-session losing streak. Apple’s reversal came as the technology sector has taken a beating this week, with the SPDR Technology ETF XLK, -0.73% shedding 2.8% to be on track for the worst weekly performance since March. The chip sector was being hit particularly hard after downbeat outlooks for Micron Technology Inc. MU, -9.87% and KLA-Tencor Corp. KLAC, -9.72%
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 209.03.
The projected upper bound is: 231.11.
The projected lower bound is: 216.64.
The projected closing price is: 223.87.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 64.7283. This is not an overbought or oversold reading. The last signal was a sell 0 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 68.06. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 52. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 5 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -3.770 at 223.100. Volume was 32% above average (neutral) and Bollinger Bands were 26% wider than normal.
Open High Low Close Volume___
226.230 227.350 221.300 223.100 34,289,976
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 222.33 202.73 182.57
Volatility: 17 23 27
Volume: 29,506,328 25,091,280 30,239,852
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 22.2% above its 200-period moving average and is in an upward 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 moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 39 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.