Apple Inc. (NASDAQ:AAPL) on the brink of a 5th straight loss as market capitalization breaks below $900 billion

Apple Inc. (NASDAQ:AAPL) on the brink of a 5th straight loss as market capitalization breaks below $900 billion

Apple Inc. (NASDAQ:AAPL) on the brink of a 5th straight loss as market capitalization breaks below $900 billion

Shares of Apple Inc. tumbled toward a four-month low on Wednesday, after Guggenheim Securities analyst Robert Cihra cut his rating and earnings estimate, saying rising selling prices is “no longer enough” to offset weakening iPhone units.

The stock AAPL, -2.82% dropped 2.5% in afternoon trade to the lowest price since July 6. That took Apple’s market capitalization below $900 billion for the first time since May.

The shares are on track for a 5-session losing streak and have now shed 10.7% during the streak, contributing to a 19.2% loss since the Oct. 3 record close of $232.07. At Wednesday’s intraday low of $185.93, the stock was 19.88% below its record close.

Apple’s stock has slumped 10.6% over the past three months, while the Nasdaq-100 Index NDX, -0.89% has lost 8.2% and the Dow Jones Industrial Average DJIA, -0.81% has slipped 0.3%.

If Apple’s stock closes below $185.656, it would become the eighth Dow component to enter a bear market, following the stocks of fellow technology-sector Dow components International Business Machines Corp. IBM, -0.53% and Intel Corp. INTC, -0.63% INTC, -0.63% Meanwhile, the Dow is just about 6.5% below its Oct. 3 record of 26,828.39.

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 211.33.

The projected upper bound is: 199.88.

The projected lower bound is: 172.12.

The projected closing price is: 186.00.

Candlesticks

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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with APPLE INC), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 3.4295. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 5 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 30.41. 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 sell 49 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 -157.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 27 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -5.430 at 186.800. Volume was 85% above average (neutral) and Bollinger Bands were 101% wider than normal.

Open High Low Close Volume___
193.900 194.480 185.930 186.800 60,800,956

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 203.12 217.50 193.46
Volatility: 55 41 33
Volume: 49,967,060 38,153,352 32,595,680

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 is currently 3.4% 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 25 periods.

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