Apple Inc. (NASDAQ:AAPL) Stock Among Hardest Hit As Coronavirus Sell-off Continues
Tech company stocks were hammered again on Thursday amid worsening news on the spread of the novel coronavirus COVID-19, with some of the largest tech companies including Microsoft and Apple suffering some of the steepest drops.
The market selloff was attributable, at least in part, to the disclosure of the first U.S. case of a patient who had neither traveled to a COVID-19 hotspot or knew of interacting with an infected person.
The Dow plunged 1,194 points, or 4.43 percent, on Thursday. The index has fallen every day this week in connection with coronavirus fears, and is now down 11.82 percent in the past five days. It has reportedly been the biggest drop for U.S. stocks since the 2008 financial crisis.
Microsoft was the hardest hit stock on the Dow, with shares in the company plummeting 7.05 percent to $158.18 a share on Thursday. The drop followed Microsoft’s disclosure on Wednesday that it no longer expects to achieve its revenue guidance for its current quarter as a result of the coronavirus epidemic.
The company’s personal computing segment, including its Windows OEM and Surface devices businesses, are the areas seeing an impact related to the outbreak, Microsoft said. “All other components of our Q3 guidance remain unchanged,” the company said on Wednesday.
Overall, PC shipments are now expected to drop 9 percent in 2020, with the spread of COVID-19 “hampering supply and leading to reduced demand,” research firm IDC said Thursday, announcing a revision from its prior forecast of a 6.8-percent decline.
Apple, which last week had revised its guidance downward on coronavirus impacts, saw its stock price fall 6.54 percent to $273.52 a share on Thursday. The outbreak has been taking a toll on iPhone production and sales in China, Apple said in its disclosure.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 291.37.
The projected lower bound is: 255.61.
The projected closing price is: 273.49.
A black body occurred (because prices closed lower 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 29 white candles and 21 black candles for a net of 8 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 4 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 7.2512. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 7 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 28.66. 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 19 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 -181.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 24 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed down -19.130 at 273.520. Volume was 169% above average (trending) and Bollinger Bands were 89% wider than normal.
Open High Low Close Volume___
281.100 286.000 272.960 273.520 80,151,384
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 307.82 306.47 241.41
Volatility: 48 38 31
Volume: 40,601,680 34,497,760 28,323,532
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 heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 13.3% 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 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 5 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an oversold condition.