Apple Inc. (NASDAQ:AAPL) Stock Slides 5% As Coronavirus Fears Rise

Apple Inc. (NASDAQ:AAPL) Stock Slides 5% As Coronavirus Fears Rise

Apple Inc. (NASDAQ:AAPL) Stock Slides 5% As Coronavirus Fears Rise

Apple’s stock price dropped 5% in early trading on Monday, as Wall Street continues to fear the impact coronavirus will have on the tech giant’s business — as well as the global economy.

After a few hours of trading, Apple shares were down to about $298 — after having fallen as low as $289 earlier in the morning — which is about 24 points below where it was last week. Last Monday, Apple warned investors coronavirus had “temporarily constrained” iPhone production in China, causing the company to fall behind schedule. In addition, the company said demand for its products has fallen off because of the deadly virus outbreak.

Still, Apple’s dip has hardly put the company on the verge of Chapter 11: Apple is jockeying with longtime rival Microsoft for the claim to being the world’s most valuable company, with both tech companies worth about $1.3 trillion on Monday morning.

Overall, the stock market was hit hard on Monday, as investors worry about the spread of coronavirus, following several hundred confirmed cases in South Korea, Italy and Iran. The Dow Jones was down more than 850 points, or about 3%, on Monday, and Nasdaq, where Apple is traded, was down about 3.3%.

There have been more than 77,000 confirmed coronavirus cases, according to the Washington Post, by the end of Sunday; nearly 2,600 people have died from  it. Most of the cases stem from China, where the economy has been devastated in the last month by the outbreak.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 314.01.

The projected lower bound is: 283.54.

The projected closing price is: 298.77.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 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 3 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern 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 27.4996. 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 37.53. 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 16 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 -336.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 21 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed down -14.870 at 298.180. Volume was 96% above average (neutral) and Bollinger Bands were 3% narrower than normal.

Open     High      Low     Close     Volume___
297.260 304.180 289.230 298.180 55,548,828
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 319.23 305.74 240.06
Volatility: 37 31 30
Volume: 29,786,918 32,499,660 28,053,782

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 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 24.2% 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 volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 2 periods.

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