Apple Inc. (NASDAQ:AAPL) is down 7% in pre-market trading as part of wider stock market slump

Apple Inc. (NASDAQ:AAPL) is down 7% in pre-market trading as part of wider stock market slump

Apple Inc. (NASDAQ:AAPL) is down 7% in pre-market trading as part of wider stock market slump

AAPL is down more than 7% in pre-market trading, but it’s nothing to do with the company: it’s part of a slump across the stock market caused by two factors.

First, coronavirus fears are causing nervousness about the performance of shares across the market. Many companies, including Apple, are suffering the double-hit of supply problems in China and reduced demand from less shopping as consumers avoid shops …

Second, and the specific trigger for the current concern, Saudi Arabia slashed oil prices over the weekend, with immediate impact on energy companies, then banks due to concerns that energy firms could default on loans, and the rest of the market as a knock-on effect.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 290.10.

The projected lower bound is: 241.52.

The projected closing price is: 265.81.

Candlesticks

A white body occurred (because prices closed higher than they opened).
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.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 6 falling windows in the last 50 candles–this makes the current falling window even more bearish.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.4087. This is not an overbought or oversold reading. The last signal was a sell 1 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 35.29. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 5 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 -143.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 31 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -22.860 at 266.170. Volume was 113% above average (neutral) and Bollinger Bands were 128% wider than normal.

Open     High      Low     Close     Volume___
263.750 278.090 263.000 266.170 71,686,208
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 286.66 307.36 244.92
Volatility: 93 53 35
Volume: 68,935,584 40,132,136 29,704,268

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.

Summary

APPLE INC gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 8.7% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 12 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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