Even Mag 7 stocks are not safe from tariffs. In Apple’s case, they are probably the most exposed to retaliatory tariffs against China. While Monday’s market bounce provided a bit of respite of Apple, Tuesday’s was among the most bearish moves you can imagine. A nearly complete engulfing of yesterday’s entire range, an open near yesterday’s highs and a close beneath yesterday's lows.
The last four days have been absolutely nightmarish, with AAPL shares coming down from over $220 to a closing price of $172.42 Tuesday. The “Death Cross” showed up a couple of days ago, and the downside action has its sights on multi-year lows. Last time Apple traded this low was May 2024.
Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.
Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.
Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.
Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.
Dave Bartosiak's technical analysis approach adds depth to our understanding Apple’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.
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Apple Inc. (AAPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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