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Tuesday, December 7, 2021

Apple Inc. (NASDAQ:AAPL) shares have biggest one day drop since August amid trade war uncertainty

Apple Inc. (NASDAQ:AAPL) shares have biggest one day drop since August amid trade war uncertainty

Today, Apple’s stock has suffered its biggest one-day loss since the month of August, according to Bloomberg. The company’s shares dropped as much as 3% during trading, all fueled by the rising tensions in the trade war between the United States and China.

The reason for today’s drop in stock price can at least partially be attributed to President Trump’s comments that he does not “have a deadline” to sign any trade agreement with China and that he is willing to wait another year if necessary to secure a deal:

“If it’s not going to be a good deal, I’m not signing a deal…it can’t be an even deal. If it’s an even deal, it’s no good.”

Wedbush analyst Daniel Ives wrote that “Apple continues to be in the crossfire” of the trade war and that the company has “the most to lose if this tariff war does not see a truce going forward.” If an agreement is not signed, Apple will continue to see more of its products affected by tariffs, with the latest set to go into effect on December 15th.

Apple has made recent efforts to ease or remove the tariffs from its products, going as far as Tim Cook himself giving President Trump a tour of their Mac Pro production in Texas and hiring lobbyists to push the company’s trade agenda in Washington. So far, success has been hit or miss for the company.

Technical Indicators

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 268.94.

The projected lower bound is: 251.59.

The projected closing price is: 260.26.


A white body occurred (because prices closed higher 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 31 white candles and 18 black candles for a net of 13 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.

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 45.1549. 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 52.70. 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 4 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 -212.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 1 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 9 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -4.710 at 259.450. Volume was 7% above average (neutral) and Bollinger Bands were 44% narrower than normal.

Open     High      Low     Close     Volume___
258.310 259.530 256.290 259.450 29,377,268
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 264.26 245.74 209.55
Volatility: 20 23 29
Volume: 22,083,526 24,986,566 26,992,862

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 23.8% 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 volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 73 periods.

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