Apple Inc. (NASDAQ:AAPL) Stock Plunges $20 as Stock Market Trading Temporarily Halted After Opening Bell

Apple Inc. (NASDAQ:AAPL) Stock Plunges $20 as Stock Market Trading Temporarily Halted After Opening Bell

Apple Inc. (NASDAQ:AAPL) Stock Plunges $20 as Stock Market Trading Temporarily Halted After Opening Bell

Apple’s stock opened at $255.94 this morning, down nearly $20 from a closing price of $275.43 on Wednesday, as the COVID-19 coronavirus pandemic continues to result in wild fluctuations on the stock market this week.

The broader S&P 500 index dropped over seven percent shortly after the opening bell this morning, triggering an automatic suspension of trading for 15 minutes.

Apple like many large companies is taking several precautions in relation to the COVID-19 outbreak around the world, including closing all Apple Stores in Italy, suspending Today at Apple sessions in several regions, and more. It is also looking very likely that Apple will not hold WWDC 2020 as a physical event, with other large developer conferences like Google I/O and Facebook F8 having already been cancelled.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 275.56.

The projected lower bound is: 219.17.

The projected closing price is: 247.36.

Candlesticks

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 7 falling windows in the last 50 candles–this makes the current falling window even more bearish.

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 29.2227. This is not an overbought or oversold reading. The last signal was a sell 4 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 33.87. 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 8 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 -175.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.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 34 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -27.200 at 248.230. Volume was 197% above average (trending) and Bollinger Bands were 140% wider than normal.

Open     High      Low     Close     Volume___
255.940 270.000 248.000 248.230 104,618,520
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 282.14 306.12 246.28
Volatility: 113 63 40
Volume: 74,189,368 43,013,124 30,463,486

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 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 0.8% 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 15 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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