Apple Inc. (NASDAQ:AAPL) Keeps Falling
Apple fell 4.8% to 176.98, now down 20% since its Nov. 1 earnings report and the cautious holiday guidance. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, has erased its late summer gains and is back below its August 2012 peak. That means you would have been better off if you had bought and held the S&P 500 since then over Apple stock.
Still the world’s most-valuable company, the Dow Jones, S&P 500 index and Nasdaq composite tech titan has a big influence on the major averages. Along with Apple stock, iPhone suppliers also have been selling off, expanding the Apple stock market effect.
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 207.90.
The projected upper bound is: 190.52.
The projected lower bound is: 161.56.
The projected closing price is: 176.04.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black 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 5 falling windows in the last 50 candles–this makes the current falling window even more 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 21.8128. This is not an overbought or oversold reading. The last signal was a buy 2 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 28.91. 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 sell 53 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 -150.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 31 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -8.880 at 176.980. Volume was 98% above average (neutral) and Bollinger Bands were 131% wider than normal.
Open High Low Close Volume___
178.370 181.470 175.510 176.980 67,825,248
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 194.39 214.72 193.96
Volatility: 53 44 33
Volume: 44,512,540 39,072,912 32,187,412
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 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 8.8% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of AAPL.O (mildly bearish). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 29 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an oversold condition.